OREANDA-NEWS. December 20, 2012. JSC Russian Railways completed the acquisition of 75% of the shares of Gefco S.A. from PSA Peugeot Citroen on 20 December 2012. The total consideration for the purchase of these shares is 800,000,000 Euros. PSA Peugeot Citroen retains a 25% stake, which takes into account, among other factors, the strategic importance of Gefco’s business for the automotive group.

The transaction has been completed in accordance with the share purchase agreement executed on 5 November 2012 by Russian Railways and PSA Peugeot Citroen following exclusive negotiations between Russian Railways and PSA Peugeot Citroen, during which PSA Peugeot Citroen and Gefco completed the necessary consultations with workers’ councils, and the signature of the Shareholders’ agreement in relation to Gefco S.A., which sets out the main principles of corporate governance and the partners’ future cooperation as the shareholders of the company.

The acquisition of Gefco, one of Europe’s top ten major logistics operators and a major provider of integrated 4PL/3PL logistics services, is a logical step towards the development of the logistics business at Russian Railways. The acquisition will provide Russian Railways with access to state-of-the-art logistics technologies, increase the efficiency of the transportation infrastructure’s utilisation and promote the attractiveness of transit cargo flows through Russia’s territory. Gefco’s experience in 4PL logistics will be invaluable in increasing the efficiency of the internal procurement systems at Russian Railways.

The collaboration with Russian Railways will also provide a stable environment for the operation and development of Gefco with a minimal level of corporate risks and ensure maximisation of the company’s value. Russian Railways intends to retain the management of Gefco and all of its existing business units, including those engaged in providing services to PSA Peugeot Citroen.

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JSC Russian Railways is the sole owner of the rail track and key rail infrastructure in Russia and one of the three largest transport groups in the world, with freight turnover of almost 2.7 billion ton-kilometres in 2011 and passenger turnover of about 130 billion passenger-kilometres. Consolidated revenues in accordance with IFRS totalled RUB 1,481bn (EUR 36.1bn) in 2011, while EBITDA amounted to RUB 356bn (EUR 8.7bn). Net income was RUB 183bn (EUR 4.5bn).

JSC Russian Railways has a credit rating equal to that of the Russian Federation (Baa1/BBB/BBB) assigned by the three main international rating agencies Moody’s, Fitch and Standard & Poor’s.

GEFCO, an international logistics operator, manages over 300 offices in 32 countries worldwide. Key GEFCO customers include major automotive and industrial enterprises, such as Peugeot Citroen, GM, L’Oreal, Siemens, Bosch, Ikea, Henkel, and Procter&Gamble.

GEFCO’s major shareholder is the automotive concern PSA Peugeot – Citroen (France). PSA is also GEFCO’s key customer, accounting for 62% of its revenue. In 2011, the company’s revenue increased by 10% to EUR 3.7 billion, while operating profit amounted to EUR 220 million.