COMPLETION OF PURCHASE OF ANGEL TRAINS
8 June 2008
A consortium of investors including the Babcock & Brown European Infrastructure Fund, Babcock & Brown Public Partnerships, AMP Capital Investors (AMP Capital), Deutsche Bank, funds advised by Access Capital Advisers and Public Sector Pension Investment Board (together, ‘the Consortium’), announced today that, following approval by the relevant competition authorities, it has completed the acquisition of Angel Trains (or ‘the Company’), the leading European rolling stock provider from the Royal Bank of Scotland. Babcock & Brown advised the Consortium, structured the transaction and arranged long term financing.
The business will now be separated into distinct and stand alone UK and European entities reflecting the differences in their market environment and positions.
Rob Verrion has been appointed CEO of Angel Trains’ UK business. Rob is a former Chief Operating Officer and director of Transco plc where he was responsible for the safety, operations and financial results of the UK gas distribution business and most recently, Rob has been advising on a series of potential transactions.
Haydn Abbott has been appointed as CEO of Angel Trains International. Haydn joined Angel Trains in 1999 as Group Managing Director where he has played a crucial role in developing the Group in the UK and in particular in forming and developing the European business of the company. Haydn joined the company from De La Rue plc where he was Executive Director of the company's Cash Systems Division. Prior to this, he spent eight years at the Sony Corporation reaching the position of Vice President, Sony Europe (Broadcast & Professional Products Business Division).
Commenting on today’s announcement, Simon Gray, Head of European Infrastructure M&A at Babcock & Brown said:
“We are delighted to have completed this transaction ahead of our expected timescale. The way we are structuring the business will ensure that Angel Trains’ UK business and Angel Trains International are fully focused on delivering on the opportunities that exist in their respective markets. In the UK we are operating in a mature, but growing market, whilst the continental Europe market is developing rapidly following market liberalisation mandated by the EU’s Open Access Directive. The business stands to benefit from these growth opportunities with its sizeable and attractive pan-European portfolio of high quality assets. In Rob and Haydn we have two top class CEO’s to take the businesses on to their next phases.”
- ENDS –
For further information please contact:
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Anthony Kennaway
Babcock & Brown
+44 207 203 7300
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Sarah Hudson
AMP Capital Investors
+61 424 034 059
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Giles Croot
Brunswick Group
+44207404 5959
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About the Transaction
The Consortium announced on 13 June 2008 their intention to purchase Angel Trains for an enterprise value of £3.6bn, subject to regulatory approvals. Babcock & Brown advised the Consortium, structured the transaction and arranged long term financing in excess of £2.8 billion.
Long term debt facilities to fully support the acquisition were competitively arranged by Babcock & Brown and provided by a group of leading banks including BNP Paribas, Banca IMI SpA, Calyon, Commonwealth Bank of Australia, DEPFA Bank plc, Dexia Credit Local, HSH Nordbank AG, ING Bank, KfW IPEX-Bank GmbH, Lloyds TSB Bank plc, Mitsui Banking Corp, Natixis, NORD/LB Norddeutsche Landesbank Luxembourg S.A., RBC Capital Markets, The Royal Bank of Scotland, Sumitomo Mitsui Banking Corporation, Unicredit Market & Investment Banking and an institutional funds manager, Queensland Investment Corporation. The Consortium’s legal advisers were Freshfields Bruckhaus Deringer LLP.
About Angel Trains
Angel Trains is a leading provider of railway rolling stock in the UK and in Continental Europe. In the UK, Angel Trains is one of three rolling stock companies and provides approximately 4,100 passenger train vehicles and 280 freight locomotives to passenger and freight operators. Angel Trains customers include 18 of the 20 train operating companies including significant fleets placed with South West Trains and Virgin West Coast.
In Continental Europe, Angel Trains has operations in 11 countries and provides approximately 240 locomotives and 180 passenger trains to various operators. It also has a significant order book of passenger trains, locomotives and wagons in build.
About Rob Verrion
Rob Verrion is the CEO of Angel Trains’ UK business. Formerly, as the Chief Operating Officer and a director of Transco plc, Rob was responsible for the safety, operations and financial results of the UK gas distribution business. In his seven year career with Transco he also served as Transmission Operations Director and Customer Operations Director. Prior to the merger with National Grid plc he was the acting Managing Director, Gas Distribution business.
Before joining Transco, Rob was the CEO of Metrogas S.A., the 2 million customer, gas distribution company for Buenos Aires, the capital city of Argentina, and its southern hinterland. He led the team that completed the initial public offering of Metrogas’ shares on the New York Stock Exchange.
Rob took early retirement from Transco plc (now National Grid plc) in 2003 and has since worked as a consultant on a number of infrastructure projects. He is a non-executive director of Babcock & Brown Infrastructure (Channel Islands) Holdings Ltd. Rob is a chartered accountant.
About Haydn Abbott
Haydn Abbott joined Angel Trains as Managing Director in 1999 from De La Rue plc where he was Executive Director of the company's Cash Systems Division. Prior to this, he spent eight years at the Sony Corporation reaching the position of Vice President, Sony Europe (Broadcast & Professional Products Business Division). His extensive corporate experience also includes employment with Racal Energy Resources and Schlumberger.
Haydn Abbott is a Chartered Engineer and a member of the Institute of Electrical Engineers.