SNCF, DWS and CDPQ announce the completion of the sale by SNCF Group of Ermewa

SNCF, DWS and Caisse de dépôt et placement du Québec (CDPQ), a global investment group, has announced the completion of the transaction whereby SNCF Group, the French State transport and railway operator, sold its shares representing 100 percent of the Ermewa Holding’s capital and voting rights, and its subsidiaries (together the Ermewa Group), to a consortium consisting of CDPQ and DWS.

Ermewa is a leading provider of freight railcars and tank container leasing services comprising a fleet of 100,000 assets, serving over 1,000 customers in 80 countries and with 40 international offices.

The group specialises in designing, optimising and managing strategic assets for the global supply chain. With its headquarters in France, Ermewa offers local expertise to customers from industries as diverse as steel, energy, construction, chemicals, and food & beverages, as well as logistics companies and freight forwarders.

The completion of the transaction follows the completion of the customary consultation with employee representative bodies within SNCF Group and Ermewa, and the confirmation of the required regulatory authorisations, including of certain competition authorities, including the European Commission, and the French minister of the Economy, Finance and the Recovery.

DWS and CDPQ have acquired Ermewa on an equal-share, joint-control basis. This marks the fourth acquisition for DWS’ third Pan-European focused infrastructure strategy. The transaction also demonstrates CDPQ’s continued commitment to rail mobility in Europe and internationally.

Jean-Pierre Farandou, chairman and CEO of SNCF said: “The sale of Ermewa is fully in line with the SNCF Group’s strategy to become a world leader in sustainable mobility for passengers and goods. Ermewa, which remains an important commercial partner of SNCF, will benefit from the support of long-term partners, ensuring the sustainability of the company’s activity.”

He added: “This operation leads to a reduction of the SNCF group’s net debt by circa €3.2bi (the price received for the sale of the shares, added to the Ermewa’s own debt which will be assumed by the new shareholders) and will help achieve the objective of maintaining the SNCF group’s financial trajectory.”

Hamish Mackenzie, head of infrastructure at DWS, said: “We look forward to working with Ermewa’s highly experienced management team alongside our active partner CDPQ to unlock Ermewa’s full potential and ambitions in the European railcar and global tank container markets. We are pleased to continue our strong relationship with SNCF through this transaction, demonstrating trust in our ability to drive value through active asset management and partnership approach.”

He added: “With a strong track record and industry-leading expertise, we believe Ermewa is ideally positioned to support and benefit from the strong sector tailwinds including Europe’s expected rail modal share increase and decarbonisation trends impacting freight transport and European economies.”