VTG acquires Redwood Rail rail-car fleet

VTG Rail Inc. has acquired the fleet of Redwood Rail LLC, a transaction that will add 1,135 rail cars to VTG's fleet, the company announced today.

The acquisition will enlarge VTG's fleet to 5,200 rail cars. VTG also assumed the associated leases as well as Redwood Rail's existing customer relationships, according to a VTG press release.

Financial terms were not disclosed.

"For us, acquiring the fleet is an important strategic step that will further strengthen our position in the U.S. market," said Chris Schmalbruch, president of VTG Rail. "Having purchased the Sumitomo fleet of around 2,450 rail cars at the end of 2011, we are very pleased to have found another investment that is an excellent fit for us and complements our portfolio."

The cars that VTG acquired will further diversify its portfolio, including freight cars for moving grain, cement, sand, plastics products and logs. Among the new customers gained via the existing leases are two Class Is and a global commodities company, VTG officials said.

VTG Rail is a subsidiary of Europe-based VTG AG.