Vossloh signed an agreement with the owners of its long-standing business partner Scandinavian Track Group (STG) to acquire the group. STG is a renowned provider of a broad portfolio of services with a sales focus on the fast-growing and strategically important Swedish rail infrastructure market.
The acquisition is expected to be completed in mid-2024 and is subject to the approval of the transaction by the Swedish Competition Authority and the Swedish Ministry of Economic Affairs.
Scandinavian Track Group offers various maintenance services for the rail track. The company is the market leader in Sweden for services relating to switches, such as their installation or maintenance, as well as for sophisticated welding services on the rail track. STG also offers a wide range of inspection consulting services based on its extensive technical expertise.
The purchase and refurbishment of used switches and other track components for resource-saving reuse completes STG’s offering. The acquisition thus fits seamlessly into Vossloh’s sustainability strategy and expands the service portfolio in the area of the circular economy. In the future, Vossloh will be ideally positioned in this region to offer the complete value chain of switches, from development and production to maintenance and the reconditioning of used switches.
“STG fits perfectly to our portfolio, offers many synergies and strengthens our position in the innovative Swedish and, in the long term, Scandinavian market. The acquisition follows our one-stop-shop approach, according to which we offer our customers tailor-made solutions across all divisions,” Oliver Schuster, CEO of Vossloh AG said.
STG employs around 120 people, generated the equivalent of EUR 22.3 million in sales revenues in the 2023 financial year and will strengthen the Lifecycle Solutions division in future.
Vossloh is already represented by various subsidiaries in Northern Europe. The largest of these is Vossloh Nordic Switch Systems, which belongs to the Customized Modules division and is based in Sweden. Here, more than 185 employees produce switch systems for the Scandinavian market and for export. In addition, the subsidiary Vossloh Rail Services Scandinavia, based in Örebro, Sweden, which is part of the Lifecycle Solutions division, provides comprehensive services related to the maintenance of rails and switches.
In the 2023 financial year, Vossloh generated sales revenues of just under EUR 140 million in Northern Europe.
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