Key acquisition strengthens Vossloh’s presence in Northern Europe
Vossloh is one step away from finalising a strategic business acquisition to strengthen its presence in Northern Europe. Only the official approval of the Swedish authorities remains for the rail technology giant to complete the acquisition of Scandinavian Track Group (STG), a company specialising in switch services and track-specific welding services in Sweden.
The two parties have been long-standing partners, meaning the new business deal will not change much in how they cooperate. The agreement for the acquisition of the STG group has already been signed and is now in the process of being approved by the Swedish Competition Authority and the Swedish Ministry of Economic Affairs. Vossloh expects that everything will be finalised by mid-2024.
What will change, however, relates mainly to the range of Vossloh’s portfolio, which this acquisition will significantly expand. “STG fits perfectly with 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,” commented Oliver Schuster, CEO of Vossloh AG.
In practice, according to Vossloh, the expansion will mean it will be able to complete its “range of services and will cover the entire life cycle of switches in the future.”
Following robust financial performance
The acquisition of STG by Vossloh reflects Oliver Schuster’s quote regarding his company’s financial performance in 2023. A few days ago, Schuster stated that Vossloh had a great year in 2023 and looks at 2024 with “great confidence”.
Despite global crises, Vossloh reported robust financial performance in 2023, marking a significant increase in sales revenues to 1.21 billion euros, a 16.1 per cent surge from the previous year. Earnings before interest and taxes (EBIT) rose by 26.2 per cent to 98.5 million euros, while free cash flow doubled to 70.9 million euros.
The fiscal year 2024 commenced on a positive note, with Vossloh witnessing further improvements across key financial metrics compared to the same period last year. Order intake reached a record 350.1 million euros, with sales revenues climbing 4.9 per cent to 268.8 million euros. EBIT for the first quarter of 2024 stood at 17.9 million euros, up 27.4 per cent from the previous year.
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