The acquisition will increase VTG’s fleet of wagons from 80,000 to over 94,000, and revenue growth of €120m is expected from 2018 as well as a €100m improvement in Ebitda.

The transaction is expected to be completed in the fourth quarter of 2017, and is being financed through a senior loan of up to €500m and a privately placed hybrid bond worth approximately €300m. The total purchase price is estimated to be €780m as well as all investments made by Nacco from the start of year until the closing date, which is estimated to be an additional €140m.

The deal will be completed subject to closing conditions and approvals, particularly from antitrust authorities.