FESCO to announce acquisition of Metiztrans group of companies
FESCO Transportation Group (RTS/MICEX: FESH/FESHG) closed the transaction to acquire companies of Metiztrans group – a private rail operator with 971 railcar in operation, including 732 gondola cars and 120 fitting platforms.
99.9% shares in companies of Metiztrans group were acquired on the balance sheet of Transgarant – FESCO’s core rail company. The acquisition was financed with debt.
By agreement with the selling party, the transaction amount is not disclosed at the moment.
Metiztrans is focused mainly on coal transportation in Eastern Siberia and Far East, being a synergetic addition to Transgarant’s existing strong positions in this market. We believe the acquisition of this efficiently ran business will further boost our presence in rail transportation in these regions”, said Alexey Grom, FESCO Vice President for Rail.
With the acquisition of Metiztrans, FESCO’s total railcars fleet will exceed 19,000 units, which will enable FESCO to better satisfy the growing demand for rolling stock. According to Alexey Grom, this acquisition is part of FESCO’s bulk rail development strategy, which includes, among other things, the plan to increase FESCO total railcars fleet up to at least 20,000 units before the end of the year.