The transfer, which has already been approved by the Vossloh executive board, came into economic effect on July 1 and Vossloh says it expects to reach financial close in the first quarter of next year. In addition to the purchase price, Stadler will assume €124m in debt liabilities from Rail Vehicles.

Based at Albuixech near Valencia in Spain, Vossloh Rail Vehicles designs and manufactures LRVs, metro trains and locomotives for both the domestic and international markets. The plant is Iris and ISO 9001 certified and has capacity to assemble up to 150 vehicles per year. The unit achieved sales of €223.2m in the 2014 financial year and €182.4m in the first nine months of this year.

Vossloh says that Rail Vehicles' management and all of its proven functions will remain in Albuixech.

"We are very happy that, with Stadler Rail, we have found a buyer that is experienced in the industry, has a tremendous reputation," says Dr Hans Martin Schabert, chairman of Vossloh's executive board. "We are convinced that the expertise, experience and business model of Rail Vehicles and Stadler will ideally complement one another. Rail Vehicles can look forward to the prospect of further development within the Stadler Group."

The sale of Rail Vehicles is part of a medium-term strategy approved in December 2014 which will also see the disposal of Kiel-based Vossloh Locomotives and Vossloh Electrical Systems in Düsseldorf by 2017 as the group refocuses on track products and activities.