Suttons International Limited and VTG Tanktainer GmbH, a subsidiary of VTG Aktiengesellschaft (VTG), announce today that they have signed an Asset Purchase Agreement outlining the acquisition by Suttons of VTG’ overseas ISO tank containers, personnel, and customer contracts, including VTG interests in a joint venture with Mission Line in Brazil.
VTG’s interests in its established Joint Venture COSCOVTG Tanktainer Co. Ltd, to service the domestic Chinese market, is not part of the Suttons transaction. VTG Tanktainer and COSCOVTG Tanktainer Co. will be working in the coming weeks and months, along with Suttons to ensure a 3-way partnership to support the Joint Ventures ISO Tank customers.
Suttons International Limited is part of the family-owned Suttons Group, a leading UK and global logistics business providing end-to-end solutions and services to the bulk liquid, gases and powders sectors. This acquisition will further increase its capability to serve its customers and extend its global reach. VTG Aktiengesellschaft is a leading international wagon hire and rail logistics company with more than 94,000 railcars on its books at the current time – the biggest privately owned fleet in Europe.
Suttons will take control of the acquired business in the coming months. In the interim period VTG will continue to manage the tank containers, personnel, and customer contracts. Suttons and VTG will communicate during this period with all personnel, customers, suppliers and agents over the transitional plans and ongoing relationships.
In selling its overseas activities, VTG Aktiengesellschaft is strategically realigning its VTG Tanktainer business unit. In the future, VTG Tanktainer will focus on the global leasing of tank containers, flanked by integrated logistical services.
“This sale refocuses and aligns our asset business with the strategy of the whole VTG Group,” says Oksana Janssen, Chief Operating Officer Eurasia & Far East at VTG AG. “It also ensures the operating business meets our long-term profitability expectations both during and beyond the coronavirus crisis.”
John Sutton, Managing Director of Suttons International Limited & CEO of Suttons Group comments on the signing of the agreement: “This acquisition will strengthen our geographical scale and give us a strong presence in new markets to better serve our customers, as well as provide greater opportunities for all staff.
“It will firmly establish our business amongst the top 10 global tank container operators and will be integrated into our existing, robust management structure.”
Focusing sharply on the leasing business leaves VTG perfectly placed to service growing customer demand for integrated intermodal logistics solutions.
“Our broad spectrum of fleet offerings, our extensive logistical network and the expertise embodied by VTG Tanktainer – especially in the transportation of chemicals and hazard goods – lay the ideal foundation for a global footprint built around focused logistical services in Europe and Eurasia,” adds Klaus Wessing, Head of the VTG Tanktainer Business Unit.
John Sutton, along with the Suttons International Division, are “looking forward to welcoming our new, highly valued, colleagues into the business and continuing the successful execution of our purpose to Deliver Life’s Essentials Safely.”