Railcar leasing and financial services provider VTG Rail has acquired US-based company Redwood Rail's fleet of 1,135 units, expanding its portfolio to nearly 5,200 railcars.

VTG also assumed the associated leases and Redwood Rail's existing customer relationships as part of the transaction.

VTG Rail president Chris Schmalbruch said: “For us, acquiring the fleet is an important strategic step that will further strengthen our position in the US market.

“Having purchased the Sumitomo fleet of around 2,450 rail cars at the end of 2011, we are very pleased to have found another investment that is an excellent fit for us and complements our portfolio.”

The acquisition is expected to improve VTG’s railcar portfolio and help the company to diversify its business to other sectors such as the transportation of grain, cement, sand, plastics products and logs.

"We are very pleased to have found another investment that is an excellent fit for us and complements our portfolio."

It also gains the company new clients, including two class I railroads and a global commodities organisation.

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By GlobalData

VTG’s Russian subsidiary VTG Rail Russia has also recently acquired 220 chemical tank wagons from a subsidiary of the United Wagon Company, which will be used to transport caustic soda.

The newly acquired wagons were built in 2014 and hired by RusVinyl, a joint venture between Russian company SIBUR and Belgian firm Solvay, up to 2024.

VTG Rail Russia has also taken over the hire contract along with the wagons.

VTG Rail is the US subsidiary of European rail car leasing and rail freight logistics company VTG, which currently owns a fleet of more than 80,000 railcars.

The company also provides multi-modal logistics services, primarily regarding rail and global tank container transport.

VTG generated revenue of €987m and an operating profit (EBITDA) of €345m last year.