Widnes transport group acquires German operation
Widnes-based transport firm Suttons International has agreed a takeover deal, for an undisclosed sum, of part of German group VTG Aktiengesellschaft.
Hamburg-based VTG has agreed a transaction between Suttons and subsidiary VTG Tanktainer GmbH for the acquisition of VTG’ overseas ISO tank containers, personnel, and customer contracts, including VTG interests in a joint venture with Mission Line in Brazil.
VTG’s interests in its established joint venture COSCOVTG Tanktainer Co, to service the domestic Chinese market, is not part of the Suttons transaction.
VTG Tanktainer and COSCOVTG Tanktainer Co will be working in the coming weeks and months, along with Suttons, to ensure a three-way partnership to support the joint venture’s ISO Tank customers.
Suttons International is part of the family-owned Suttons Group, a UK and global logistics business providing end-to-end solutions and services to the bulk liquid, gases and powders sectors.
This acquisition will further increase its capability to serve its customers and extend its global reach.
VTG Aktiengesellschaft is an international wagon hire and rail logistics company with more than 94,000 railcars on its books at the current time – the biggest privately owned fleet in Europe.
Suttons will take control of the acquired business in the coming months. In the meantime, VTG will continue to manage the tank containers, personnel, and customer contracts.
In selling its overseas activities, VTG Aktiengesellschaft is strategically realigning its VTG Tanktainer business unit. In the future, VTG Tanktainer will focus on the global leasing of tank containers, flanked by integrated logistical services.
Oksana Janssen, chief operating officer Eurasia & Far East at VTG AG, said: “This sale refocuses and aligns our asset business with the strategy of the whole VTG Group.
“It also ensures the operating business meets our long term profitability expectations both during and beyond the coronavirus crisis.”
John Sutton, managing director of Suttons International and chief executive of Suttons Group, said: “This acquisition will strengthen our geographical scale and give us a strong presence in new markets to better serve our customers, as well as provide greater opportunities for all staff.
“It will firmly establish our business amongst the top 10 global tank container operators and will be integrated into our existing, robust management structure.”