Russia’s largest private freight rail transportation group Globaltrans has completed the acquisition of 100 percent of Metalloinvesttrans captive freight rail transportation operator, Globaltrans said on Wednesday.
Metalloinvesttrans is part of Russian leading metals producer Metalloinvest.
“The acquisition, for $540 million on a cash and debt-free basis, includes a three-year contract to provide freight rail transportation and logistics services to Metalloinvest,” the company said in a statement.
Metalloinvesttrans has been acquired through New Forwarding Company, a 100 percent subsidiary of Globaltrans, and has been financed through the use of the group’s own funds and from credit facilities.
“The transaction…will enable Globaltrans to further enhance its position as a leading independent private freight rail group in Russia,” Globaltrans said.
Metalloinvesttrans operated 9,202 railcars as of December 31, 2011. Metalloinvest, including the engaged third-party fleet, handled 44.2 million tons in 2011 with a focus on metallurgical cargoes (83 percent), coal (10 percent) and other cargoes (7 percent).