European wagon lessor VTG is selling its UK rail wagon hire business, VTG Rail UK, to the Universities Superannuation Scheme (USS) for an undisclosed sum.
The transaction follows an evaluation process initiated by VTG earlier this year to assess strategic options for its UK business.
VTG Rail UK operates the country’s largest private wagon and tank container fleet, comprising approximately 4,500 wagons.
Alberto Nobis, CEO of VTG, said: “Under our ownership, VTG Rail UK has developed into the leading lessor of rail freight wagons in a major European rail freight market.
“This achievement reflects the commitment of our UK management team and employees, their strong customer relationships and their consistent focus on innovation.”
Mani Herold, CFO of VTG, said: “Following a comprehensive process, we are pleased to have reached an agreement with USS that recognises the quality of the VTG Rail UK platform and its future potential, while allowing us to further focus our capital and management resources on the continued development of our broader European business.”
Rob Horsnall, head of direct equity, private markets group, USS, said: “We are delighted to have acquired 100% interest in VTG UK, a leading UK rail freight business which plays an important role in supporting the UK’s economy.
“This investment reflects our strategy of deploying long-term, patient capital into resilient infrastructure businesses that can generate stable, predictable, inflation-linked cashflows for our members over many years. With its strong asset base and market-leading position, VTG UK is well placed to support the UK’s growing rail freight sector and the UK government’s ambition to increase rail freight capacity in the years ahead.”
Yannick Da Ros, senior investment director, private markets group, USS, said: “VTG Rail UK is an established and successful company operating in a market with compelling growth prospects.
“With a fleet of around 4,500 rail freight vehicles, it plays a key role in supporting supply chains across multiple sectors of the UK economy. We are excited to work alongside the experienced management team and support the business as it continues to grow and invest for the future.”
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