Vossloh Group, a German manufacturer of railway infrastructure components, acquired Rocla Concrete Tie Inc., an American subsidiary of Altus Capital Partners focusing on concrete railroad ties. The transaction was completed in January 2017 and its financial terms were not disclosed.
| Acquirer | Vossloh Group (DE) |
|---|---|
| Target | Rocla Concrete Tie, Inc. (US) |
| Deal value | Undisclosed |
| Type of deal | Acquisition |
| Closing date | January 2017 |
| Advisors (buy side) | Not disclosed |
| Advisors (sell side) | Not disclosed |
Rocla Concrete Tie Inc., based in Florence, Kentucky, specializes in manufacturing and distributing concrete railroad ties for North American railroads. The company’s technology includes automated production lines that enhance the quality of its products.
Strategic Rationale
The acquisition is aimed at strengthening Vossloh Group's position within the North American railway market by providing it with a leading producer of concrete railroad ties. This move supports the company’s strategy to grow in regional infrastructure markets outside Europe, particularly leveraging Rocla’s technological and operational expertise.
By integrating Rocla into its existing portfolio, Vossloh seeks to benefit from improved supply chain efficiencies and a broader customer base across different rail segments, including freight and passenger lines.
Financial Context
Vossloh Group operates in an industry characterized by long-term infrastructure investment cycles. The acquisition aligns with the company’s goal of diversifying its geographical footprint while maintaining focus on core business areas such as railway track systems and maintenance services.
The North American market for rail infrastructure is expected to grow due to increasing demands from both public transportation authorities and private sector investments in logistics networks.