SNCF enters into exclusive negotiations with a consortium consisting of Caisse de dépôt et placement du Québec (CDPQ) and a fund managed by DWS Group (DWS) with regards to the sale of its subsidiary Ermewa

With revenues of €489 million, EBITDA of €271 million in 2020, a fleet of 100,000 assets and 1,200 employees, Ermewa Group is a leading provider of industrial railcars and tank containers leasing services. Operating in 80 countries, the Group specialises in designing, optimising and managing strategic assets for the global supply chain. With its headquarters in France and with 40 international offices, the Ermewa Group offers local expertise to customers from industries as diverse as steel, energy, construction, mining, food and beverage, and transportation.

The consortium's offer could lead to the conclusion of a definitive agreement once the customary consultation with employee representative bodies within the SNCF Group and Ermewa have been completed. The completion of this transaction should be subject to the authorization of certain competition authorities, including the European Commission, and of the Minister of the Economy, Finance and the Recovery.

Upon completion of the transaction, the capital of the Ermewa Group would be held in equal shares by CDPQ and DWS.

CDPQ and DWS are established investors in France, with significant holdings in leading French companies. In particular, CDPQ and DWS have a long-term value-creating investment approach, based on diligent asset management, active shareholding and appropriate governance, with the ability to finance the organic growth of the companies in which they invest.

Jean-Pierre Farandou, Chairman and CEO of SNCF said: "The planned 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, with a core rail business and two strategic assets, Keolis and Geodis. This operation would also accelerate the group's debt reduction and pursue the objective of maintaining its financial trajectory, while backing Ermewa with long-term partners, able to ensure the sustainability of the company's activity, which would remain a commercial partner of SNCF.”

Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure at CDPQ, said: “CDPQ is thrilled by the opportunity to invest in Ermewa, a French and European leader that is ideally positioned to leverage existing trends – including the development of rail freight and the decarbonization of goods transportation – which are aligned with our portfolio’s carbon-intensity reduction targets. The combined experience of CDPQ and DWS in the rail sector and our long-term investing approach would enable Ermewa and its high-quality team to play an even larger role in developing the business in Europe and globally."

Hamish Mackenzie, Head of Infrastructure at DWS, said: "We are very pleased and proud to be able to accompany Ermewa in a new phase of its development, and to commit ourselves alongside this key player in the rail freight industry to strengthen its competitiveness and influence. Ermewa has many strengths and the potential to become a European and world leader that will be able to meet the expectations of its customers and partners, first and foremost SNCF, but also to take a leading role in addressing the challenge of sustainable freight transportation. We strongly believe in Ermewa's strategic vision and would be active partners alongside CDPQ in its development.”

David Zindo-Imbault, President of Ermewa Holding, said: "I am particularly proud to open a new chapter in the history of the Ermewa Group with CDPQ and DWS. The Ermewa Group's ambition is to provide safe, efficient and innovative equipment to its customers and to contribute to decarbonizing transport flows. The investment capacity and long-term involvement of CDPQ and DWS would reinforce this ambition and allow us to envisage strong growth for the years to come.”