Bure invests in Rushrail and acquires state-of-the-art locomotives
Bure is participating in a private placement in the train operator RushRail AB. At the same time, Bure acquires locomotives to a, by RushRail, recently won large business deal.
Bure has entered into agreements to invest in the rail freight market. The investment amounts to approximately SEK 245 million, divided between two separate transactions.
Through a private placement, Bure will invest, 20 MSEK in RushRail and receive an equity stake of 30 per cent.
Bure is investing approximately SEK 225 million for the acquisition of state-of-the-art and energy-efficient electrical TRAXX locomotives from Bombardier. The locomotives will be subleased to RushRail to enable their commitment in freight transport. According to plan, the locomotives will be delivered in the fourth quarter of 2012.
RushRail in short
RushRail is a railway company and a train operator approved by the Swedish Transport Agency (Transportstyrelsen). The company was founded in the mid 2000s but started its train operator business at the end of 2010. Since 2010, RushRail has delivered rail transport services to Intercontainer Scandinavia AB and Infranord AB. In April, RushRail won a multi-year transport contract from Trätåg AB. Trätåg AB is a logistics company owned by Stora Enso and Korsnäs. Its purpose is to handle rail transport of forest produce, timber, pulpwood and biofuel. In an efficient and environmentally friendly manner RushRail will provide rail transport, transport of timber and other forest produce from Stora Enso and Korsnäs’s timber terminals to their production sites throughout central Sweden. The contract is one of the largest of its kind in Sweden with a total value of over SEK 700 million. The contract is set to commence at the beginning of 2013. RushRail has approximately 45 employees and an annual turnover of around SEK 90 million, excluding the Trätåg contract. For more information, visit www.rushrail.se and www.tratag.se.
“We at RushRail are very excited to have gained the trust of Trätåg. This is a client with stringent requirements on efficiency, deliverability and flexibility. We are also very excited to have obtained Bure as a new owner in RushRail. Bure is a professional owner with a strong capital base who we believe can support us and, together with Trätåg, can be a solid base for our future expansion,” says Jan Lindqvist, CEO and co-founder of RushRail.
“At Bure, we are very excited and feel encouraged that we, together with RushRail, will be able to offer highly competitive freight transportation services. Due to its long term nature, the locomotive investment also feels very interesting in that it will enable us to earn healthy and recurring returns. We look forward to working together with RushRail”, says Henrik Blomquist, Vice President of Bure.
Bure Equity AB (publ)
For more information contact:
Henrik Blomquist, Vice President
Tel. +46 8 614 00 20
The information contained herein is subject to the disclosure requirements of Bure Equity AB under the Swedish Securities Market Act. The information has been publicly communicated on 8 May 2012, 09.00 a.m. CET
Bure is a listed investment company with ownership interests in Nordic companies. The current holdings consist of eight portfolio companies, of which three are listed.