Touax SCA subsidiary Touax Rail has entered an agreement with DIF Capital Partners to boost its capital by €81.9m to increase the development of its long-term leasing activities of freight wagons in Asia and Europe.
With this agreement, DIF Capital Partners will own a 49% stake via its DIF Core Infrastructure Fund II while Touax SCA will be the majority shareholder with a 51% stake.
This transaction is expected to increase the value of Touax Rail as the proceeds will be used to acquire minority shareholders of two special purpose companies that own 4,000 platforms and in Touax Rail India.
It will also be used to acquire new wagons to finance the development of Touax Rail. Proceeds will also be used to return certain intercompany loans to Touax SCA.
This transaction will boost the position of Touax Rail in Europe and Asia with a fleet of around 6,930 platforms and approximately 4,080 platforms managed on behalf of third parties.
It will also increase the ability to grow and meet customer needs.
The transaction will be subject to approval from the antitrust authorities of Germany. The company expects to finalise the transaction by the end of next month.
Touax general partner and CEO Fabrice Walewski said: “We are very delighted to have DIF Capital Partners as a partner to accompany the development of our long-term leasing activities of freight wagons in Europe and Asia.
“With this transaction, Touax Rail Limited will strengthen its position in the market.”
DIF Germany partner and head Carl Jobst von Hoersten added: “This transaction is a unique investment providing exclusive access to the attractive railcar market.
“Touax Rail is a well-established, asset-heavy railcar platform with a robust and resilient business model which is well-positioned for growth.
“We look forward to working together with Touax Rail’s highly experienced management team to further grow the platform.”