Swedish company EuroMaint has agreed to sell all of its shares in its German rolling stock maintenance business to Iberia Industry Capital Group for an undisclosed amount.
The company noted that it decided to divest its German subsidiary to focus on the core business in Sweden.
With more than 800 staff at its facilities in Delitzsch, Duisburg, Kaiserslautern, Leipzig and Oberhausen (Bavaria), EuroMaint Germany focuses mainly on the maintenance and repair of passenger and freight rolling stock, according to railjournal.com.
According to the company, its German operations have experienced difficulties for several years and have a negative earnings trend last year due to project delays and low volumes.
EuroMaint Rail CEO Ove Bergkvist said: "I’m convinced that Iberia Industry Capital Group Sarl will develop the German operation in the best possible way. The disposal enables us to focus on our core Swedish operation."
The deal is subject to terms and conditions for financing and the completion of the sale is expected within the first quarter of this year.
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EuroMaint provides qualified technical maintenance to meet customer requirements for well-functioning rolling stock fleets, as well as offers service life of track-mounted vehicles such as freight carriages, passenger trains, locomotives and work machines.
The company’s Swedish operations generated a turnover of Skr1.2bn ($140m) and Ebitda of Skr65m ($7.5m) between January and September last year.
There are around 1,200 individuals at the company who work at several locations across Sweden.