Together with Solaris, CAF will broaden its already extensive range of products enabling it to meet the current and future needs in urban transport, particularly in electric mobility and multimodal door-to-door solutions. Among other transport vehicles, Solaris is also the manufacturer of Solaris Tramino tram.
“Together with Solaris, we will create a leader in urban mobility solutions beyond rolling stock, particularly in the e-mobility segment. We want to continue using and to develop Solaris’ valuable brand and to keep its Polish character. The combination of both companies’ know-how in production, design, technology and services, together with the track record of Solaris in bus product innovation will allow us to better serve our clients while creating shareholder value.” said Andrés Arizkorreta, President and CEO of CAF.
“By selecting CAF as an investor for Solaris, we ensure a promising future for the brand, its clients and its employees.” said Solange Olszewska, President and CEO of Solaris Bus & Coach.
The main markets where Solaris operates are Poland, Germany, Italy, Switzerland, Scandinavia and the Baltics. In 2017, the company delivered 1,397 buses, including conventional models (diesel and CNG) and a growing number of e-mobility vehicles, where it offers the widest available range of solutions, e.g. hybrid buses, trolleybuses, full-battery and hydrogen fuel cell powered public transport vehicles. Additionally, the company offers related services, such as maintenance and spare parts.
The transaction will position CAF Group as one of the leaders in the urban segment in Europe. It will also open new opportunities for CAF’s urban railway business in Central and Eastern Europe and strengthen its services, electric traction equipment and transport systems design businesses, while providing an opportunity to enter and grow in new mobility-related areas.
CAF’s decision, in line with its 2017-2020 Strategic Plan, will increase its technological capability to offer integrated transport solutions to an even wider portfolio of clients.
The Enterprise Value of Solaris is estimated to be slightly above €300 million, with the final amount to be determined at closing of the transaction based on the relevant adjustments. This value results in a PER ratio (Price-Earnings Ratio) for Solaris based on 2018 estimates below CAF’s 2017 ratio.
The transaction, which involves the acquisition of all of Solaris’ shares, will be funded mainly by additional CAF debt, and remains subject to customary closing conditions, including the approval of the Polish and German Anti-Trust Authorities, expected by September 2018.
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