Touax SCA announces today that its subsidiary Touax Rail Limited has entered into a final agreement with DIF Capital Partners to increase its capital by €81.9 million to accelerate the development of its long term leasing activities of freight wagons in Europe and Asia.
Touax SCA will remain the main shareholder holding 51% of the capital and 49% will be owned by its new partner DIF Capital Partners, through its DIF Core Infrastructure Fund II.
The transaction will be immediately accretive for Touax Rail Limited as proceeds will be used on the one hand to buy out minority shareholders in two special purpose companies owning c. 4,000 platforms and in Touax Rail India Limited, and to finance the Touax Rail Limited growth by acquiring new wagons. On the other hand, proceeds will be used to repay some intercompany loans to Touax SCA.
The transaction will strengthen the position of Touax Rail Limited in Europe and Asia with a fleet size of c. 6,930 platforms owned and c. 4,080 platforms managed on behalf of third parties, and increase its capacity to grow and finance the needs of its customers.
The transaction is subject to approval by the German Antitrust authorities. Touax expects to close the transaction by the end of September.
Fabrice Walewski, General Partner & CEO of Touax group, says that "We are very delighted to have DIF Capital Partners as partner to accompany the development of our long term leasing activities of freight wagons in Europe & Asia. With this transaction, Touax Rail Limited will strengthen its position in the market.”
Carl Jobst von Hoersten, partner and head of DIF Germany 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 working together with Touax Rail’s highly experienced management team to further grow the platform.”