German rail technology company Vossloh has signed a contract with Altus Capital Partners II to acquire US-based rail infrastructure company Rocla Concrete Tie.
When the acquisition was completed, the purchase price for Rocla Concrete Tie is expected to be approximately $117.2m.
While the transaction has already been approved by Vossloh's supervisory board, its completion is based on the merger control clearances.
The completion of the acquisition is expected to take place next year, and the company will operate as a business unit, Vossloh Tie Technology, within the Core Components division.
Vossloh Management Board chairman and CEO Dr Hans Schabert said: “The acquisition of Rocla Concrete Tie boosts our market position in North America considerably.
“Through the acquisition, we will in future be in a position to offer our customers optimally adapted complete systems consisting of ties, rail fasteners and switches for all rail types. Rocla Concrete Tie will nevertheless continue to offer an open product platform in order to deliver the best solution from the customer’s perspective.
“We will also benefit from Rocla Concrete Tie’s decades of experience in the US market and the established excellent customer relationships the company maintains with Class 1 railway operators and passenger transport companies in the USA.”
Rocla Concrete Tie will be the division’s second business unit, along with Vossloh Fastening Systems, and will help Vossloh to boost its business in the US market and strengthen its position as a major global rail infrastructure supplier.
The buy-out will also facilitate the expansion of Vossloh’s product portfolio, as the products of Rocla Concrete Tie complements Vossloh’s rail fasteners and switches.
The acquisition will also help Rocla Concrete Tie to supply Vossloh’s rail fasteners and switches across the US from a single source, as well as enable it to meet its profitability expectations set for its core divisions.