In compliance with article 226 of the Consolidated Text of the Securities Market Act approved by Royal Legislative Decree 4/2015, of October 23rd, and complementary regulations, the company Construcciones y Auxiliar de Ferrocarriles, S.A. (“CAF” or the “Company”) proceeds to communicate the following relevant information:
As a continuation of the Other Relevant Information issued on November 24th, 2021 (registration number 1193) regarding the strengthening of CAF's position in the French and German markets with the acquisition of the Alstom site in the Alsatian location of Reichshoffen, the Coradia Polyvalent platform, as well as the intellectual property related to the Talent 3 platform and after obtaining the regulatory authorisations needed for the purchase-sale agreement, today the closing of the operation has been formalized.
The scope of the acquisition includes several assets in France and Germany. More specifically, CAF will integrate the Reichshoffen manufacturing site, the Coradia Polyvalent platform with its associated project portfolio, as well as the intellectual property of the Talent 3 platform aimed at the German and central European markets together with related key engineering personnel.
Reichshoffen resources and personnel, with over 700 employees in the fields of engineering, sourcing and supply chain, project management, manufacturing and administration, have proven experience in railway projects for the most demanding customers as well as great potential which will allow the manufacture of a wide range of vehicles. Furthermore, its strategic location also makes it suitable for delivering to customers of other European markets.
The Coradia Polyvalent platform is a platform prepared for international traffic, capable of reaching regional speeds (up to 160 km/h) and interurban speeds in electric or bimodal traction that will provide CAF with a project portfolio worth approximately €500 million.
Among others, a relevant project with SNCF Voyageurs (“SNCF”) stands out, as well as other customer projects such as Hello Paris Services (“Hello Paris”), Régie Autonome des Transports Parisiens (“RATP”) or L'Agence de the Promotion des Investissements et des Grands Travaux (“Apix”). The agreement reached guarantees the workload at the Reichshoffen site for the coming years.
In addition, the German perimeter 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 related team of German engineers. This will boost CAF's design and approval capabilities in the German and central European markets.
Considering CAF's current order book in Germany (VRR-NWL, Bonn, Essen, Freiburg...) and pipeline of upcoming opportunities, these additional capabilities would complement the current existing ones.
The acquisition of these assets consolidates a new step in CAF's growth and diversification strategy. The main appeal of these assets lies in the strengthening of CAF in the French market, adding local operational capabilities to those already existing at the Bagnères-de-Bigorre site in France. With this acquisition CAF intends to continue its consolidation as the second railway industrial manufacturer in France and at the same time boosts its activities in the German and central European markets. Both countries constitute highly relevant markets in terms of investment in mobility.
This operation is a new step in CAF's inorganic growth strategy, following the acquisition of Solaris in 2018 and EuroMaint in 2019 among others. With these acquisitions CAF confirms its commitment to continue growth in the rolling stock and services business, strengthening accordingly its position as one of the references in the provision of transportation and mobility solutions and services.
The company value of the perimeter acquired is €75 million and has been financed with CAF debt.
Beasain, August 1st, 2022