CAF closes the purchase of the Alstom plant in Reichshoff, France

A milestone in CAF's inorganic growth strategy

CAF aims to consolidate its position as the second railway manufacturer in France, while promoting its activities in Germany and other Central European markets.

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With regard to strengthening the position of CAF at the French and German market with the acquisition of the plant Alstom en Reichshoffen, in the region of Alsacia, the train platform Coradia Polyvalent, as well as the intellectual property related to the Talent 3 platform and after obtaining the regulatory authorizations provided for in the purchase-sale agreement, CAF informs that the closing of the operation has been formalized.

 

The scope of the acquisition includes various assets in France and Germany. More specifically, CAF will integrate the manufacturing plant of Reichshoffen, the Coradia Polyvalent platform with a portfolio associated with it, as well as the intellectual property of the Talent 3 platform aimed at German market and Central European markets along with key engineering personnel.

 

Reichshoffen's resources and people, with more than 700 employees in the areas of engineering, purchasing, project management, manufacturing or administration, have extensive experience in railway projects with top-level clients, as well as great potential that will allow the execution of programs on a wide range of vehicles. Furthermore, its strategic location makes it appropriate to serve clients in other nearby European markets.

 

Platform Coradia Polyvalent It is a platform prepared for international traffic, capable of reaching regional speeds (up to and including 160 km/h) and interurban speeds in electric or bimodal traction that will provide CAF with a portfolio of projects for an amount of approximately 500 million euros. Among them, a relevant project stands out with SNCF Voyageurs (“SNCF”), as well as other client projects such as Hello Paris Services (“Hello Paris”), Régie Autonome des Transports Parisiens (“RATP”) or L’Agence de la Promotion des Investissements et des Grands Travaux (“Apix”). The agreement reached guarantees the workload at the Reichshoffen plant for the coming years.

 

Finally, the German scope of the agreement includes the intellectual property of the Talent 3 platform, capable of reaching regional speeds of up to 160 km/h even with electric traction, and the transfer of a team of German engineers linked to it. This will boost CAF's capabilities for design and homologation in the German and Central European markets. Taking into account CAF's current order book in Germany, (VRR-NWL, Bonn, Essen, Freiburg, …) and the list of upcoming opportunities, their additional capabilities will complement the current ones.

 

The acquisition of these assets consolidates a new step in CAF's growth and diversification strategy. The main attraction of these assets lies in the strengthening of CAF in the French market, adding local operational capabilities to those already existing at the headquarters of Bagnères-de-Bigorre in France. With this acquisition CAF aims to consolidate its position as the second railway manufacturer in France, while boosting its activities in Germany and other Central European markets. Both countries constitute markets of great relevance in terms of investment in mobility.

 

The operation also constitutes a new milestone in CAF's inorganic growth strategy, after the acquisition of Solaris in 2018 and EuroMaint in 2019, among others. With these acquisitions CAF confirms its commitment to growth in the rolling stock, services and other business, consequently reinforcing its position as a reference provider of mobility solutions and services. The enterprise value of the acquired perimeter is 75 million euros and has been financed with debt from CAF.