Vossloh Expands European Operations with Acquisition of Sateba Group for €450 Million

Vossloh Expands European Operations with Acquisition of Sateba Group for €450 Million

(IN BRIEF) Vossloh is set to acquire Sateba Group, enhancing its rail infrastructure capabilities and expanding its European market presence. The €450 million deal, expected to close by spring 2025, will boost Vossloh’s annual sales and align with its sustainability and profitability goals.

(PRESS RELEASE) WERDOHL, 31-Jul-2024 — /EuropaWire/ — Vossloh, a leading rail infrastructure company, has announced its agreement to acquire Sateba Group, a top European manufacturer of concrete ties. This acquisition, involving Vossloh’s subsidiary Vossloh France SAS and TowerBrook Capital Partners L.P., will enhance Vossloh’s expertise and expand its portfolio in rail infrastructure solutions. The acquisition, valued at approximately €450 million, is expected to complete by spring 2025 following regulatory approvals and employee consultations.

Sateba, headquartered in Paris, operates 19 production sites across ten European countries and employs around 1,120 people. With an annual production capacity of around four million track and turnout ties, Sateba is anticipated to achieve sales of around €340 million this financial year. Vossloh, already experienced in the concrete tie business in North America and Australia, will integrate Sateba into its Tie Technologies business unit, aiming to become a global leader in concrete tie manufacturing with annual sales exceeding €500 million.

Oliver Schuster, CEO of Vossloh AG, stated that this acquisition aligns with Vossloh’s corporate strategy and addresses the growing demand for rail network capacity to promote sustainable mobility. He highlighted Sateba’s innovation in decarbonizing concrete ties, aligning with Vossloh’s sustainability goals. The acquisition will also broaden Vossloh’s customer reach in key European markets.

The transaction will be financed through bridge financing and a long-term loan, with plans for a potential capital increase. Vossloh’s majority shareholder has indicated support for this financing strategy. Dr. Thomas Triska, CFO of Vossloh, noted that the acquisition will positively impact earnings per share and contribute to Vossloh’s long-term profitability targets, maintaining a strong financial position with a net debt to EBITDA ratio well below 2.75.

Vossloh is a global technology group which for around 140 years has stood for quality, safety, customer focus, reliability and innovative strength. With its comprehensive range of rail-related products and services, Vossloh ranks among the world market leaders in this sector. Vossloh offers a uniquely broad range of products and services under one roof: Rail fastening systems, concrete ties, switch systems and crossings, as well as innovative and increasingly digital-based services for the entire life cycle of rails and switches. Vossloh uses its systemic understanding of the track to address the central customer need of “availability of the rail track”.

Vossloh products and services are in use in more than 100 countries. With some 75 Group companies in almost 30 countries and over 40 production locations, Vossloh is active locally worldwide. Vossloh is committed to sustainable corporate governance and climate protection and with its products and services makes an important contribution to the sustainable mobility of people and goods.

The Group’s activities are organized into the three divisions Core Components, Customized Modules and Lifecycle Solutions. In the 2023 financial year, Vossloh generated sales revenues of €1,214.3 million with around 4,000 employees.

Media Contact:

Contact details for the media:
Andreas Friedemann
Phone: +49 (0) 2392 52-608
Email: presse@vossloh.com

Contact details for investors:
Dr. Daniel Gavranovic
Phone: +49 (0) 2392 52-609
Email: investor.relations@vossloh.com

SOURCE: Vossloh