Kerman & Co LLP acted for Volker Wessels in its taking full ownership of GrantRail Group, with the purchase of the 50% stake holding owned by its joint venture partner, Corus.
Doncaster-based GrantRail Group Limited was formed in 1996 as a 50/50 joint venture between the international rail and construction group Volker Wessels and the European steel producer Corus and has grown substantially, year on year since then. The acquisition by Volker Wessels of Corus’ 50% stake was completed on 26 November 2008. The group will continue to trade under the GrantRail name.
GrantRail’s operating revenues have increased from GBP 18m in 1996 to GBP 123 million in 2007. The company provides a wide range of railway construction and engineering services for major projects, including track renewals. It provides a number of specialised operations including signalling, overhead line work, high and low voltage power distribution, specialised welding services, and coated rail solutions for the metro/light rail sector. GrantRail also runs one of the largest fleets of modern specialised on-track rail plant in Europe.
GrantRail Group CEO Gren Edwards said: “This commitment by Volker Wessels to the GrantRail Group going forward provides an enhanced focus offering greater breadth and depth to our activities in the UK and Ireland. This enables us to build on the successes of the last 12 years under the joint ownership of Corus and Volker Wessels. The GrantRail Group will leverage the extensive European rail infrastructure capabilities of Volker Wessels and continue to grow and expand, not only as a leading contractor in the railways but also as a key part of the Volker Wessels activities in the UK in years to come.”
Joe Guerin, Managing Director of Corus Rail, said: “GrantRail is a successful business providing rail infrastructure services, but the joint venture was not part of our core steel production activities. The additional expertise available from Volker Wessels will help GrantRail to continue to develop and grow in the future.”
Volker Wessels Executive Director Jan Kees de Pagter said: “This acquisition confirms our confidence in the business and supports our strategy to expand Volker Wessels activities in the UK infrastructure sector. GrantRail will increasingly strengthen its links with Volker Wessels other UK business to offer a broader portfolio of turnkey services to our customers.”
The Kerman & Co LLP team was led by Daniel O’Connell and assisted by Paula Kelly and Yvonne Donaghey. Corus was represented by Burges Salmon LLP.
