News
Cavendish advises on the sale of Alstom's UK train heavy renovation businesses
5 February 2007Cavendish Corporate Finance is delighted to announce the sale of Alstom's UK train heavy renovation businesses located in Springburn, Glasgow and Wolverton, Milton Keynes, to Railcare Ltd for an undisclosed sum.
In 2006, Alstom conducted a review of its UK train heavy renovation businesses with annual sales of approximately 60 M€ and 430 employees on the sites of Springburn and Wolverton. Considering that this activity is similar in nature to rolling stock manufacturing, which Alstom no longer carries out in the UK, it was decided to sell these businesses to a company within the industry who could take it forward.
Railcare Ltd is a group of personal investors operating in the rail market, including the general manager of the Wolverton site who will continue to manage the businesses in the future.
Following the sale, Alstom's Transport activities in the UK will be concentrated in the maintenance, electrical renovation, parts and signalling markets. Alstom Transport will also continue to bid for new rolling stock projects in the UK that will combine local project management and engineering skills with its European centres of manufacturing excellence.
Alstom Transport now employs approximately 1600 people at some 20 locations across the UK and Ireland. The company's existing transport activities in the UK includes maintenance of one of the world's biggest Pendolino fleets for Virgin Trains and also maintaining the Northern and Jubilee Line fleets on the London Underground.
[Philip Barker], who heads up Cavendish's Industrials team, commented:
''This deal enables Alstom to focus on its main Transport activities and it provides an opportunity for the new owner to develop the business. We were delighted that Alstom entrusted us with such an important divestment.''
Contacts for further information:
[Philip Barker], Director
[Andrew Jeffs], Associate Director