German transport company Vossloh has completed the sale of its rail vehicles business unit in Spain to Swiss train manufacturer Stadler Rail.
In a statement, the German firm said as of 31 December, it had secured all necessary merger approvals for the sale agreement, which had been signed last November.
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At the time of signing the agreement, Stadler agreed to make a cash payment of €48m, as well as take over debt liabilities of €124m.
Vossloh noted that the sale is expected to reduce the group’s net financial debt and increase its equity by a ‘middle to high double-digit million’ amount.
One of three units that made up Vossloh’s transportation division, activities of the Spanish rail vehicles business include the development and manufacturing of new diesel-electric locomotives and light rail vehicles (LRVs).
The rail vehicles business generated sales of €223.2m in 2014 and €182.4 in the first nine months of last year.
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By GlobalDataThe sale of rail vehicles is an important step of the medium-term strategy approved in December 2014, the company noted.
The remaining business units of the company’s transportation division, the locomotives unit in Kiel and Vossloh Electrical Systems, are expected to be sold no later than next year or transferred to a partnership that is no longer controlled by Vossloh.
The takeover will see Stadler strengthen its presence in new, Spanish-speaking markets around the world, with Rail Vehicles providing Stadler Rail access to markets on the Iberian peninsula, in South and Central America and in Africa.
Image: Vossloh Rail Vehicles manufactures light rail vehicles and diesel-electric locomotives. Photo: courtesy of Vossloh.
