On August 9, 2022, Colas Rail signed a share purchase agreement to acquire Hasselmann Group based in Thuringia, Germany, and specializing in the construction of railroads and rail infrastructure.
The acquisition will enable Colas Rail to gain a foothold in the German market, thus confirming an external growth strategy targeting countries with stable economies and high investment potential in rail infrastructure.
The family-owned business includes three operative companies: Hasselmann GmbH (rail infrastructure), NTG GmbH (rail track) and LGM Logistik GmbH (rail safety). To date, the Hasselmann Group boasts nearly 300 employees and posted €70 million in revenue for 2021.
The three companies operate on conventional lines in central Germany, Hesse to Saxony, mainly for Deutsche Bahn.
“This acquisition illustrates our growth strategy across the G20. Once the Hasselmann Group has been integrated into the Colas Rail family, we intend to expand throughout Germany,” underlines Hervé Le Joliff, CEO of Colas Rail.
“Our aim is to increasingly contribute our competence and experience for the further modernisation and development of the German and European rail infrastructure and we are now looking forward to taking on this exciting challenge as part of the Colas Group or Colas Rail. We are convinced that this step is the right decision for the future and further successful development of our group of companies. “ explains Peter Krauß, Managing Director of Hasselmann GmbH.
The acquisition is expected to close during the fourth quarter 2022, subject to the approval by the relevant antitrust authority.
The German rail market, a strategic challenge for Colas Rail and its international growth
In 2020, Deutsche Bahn invested more than €10 billion in rail infrastructure. Urban transport solutions account for annual investments of more than €2 billion. Furthermore, the German government has decided to invest an additional €86 billion over 10 years to renew the national network, the second largest in the world with more than 61,000 km of track, the objective being to improve passenger comfort. The annual growth of the railway works market is estimated at 4.5% per year over the period.
At the heart of a buoyant market, Colas Rail aims to contribute its know-how and expertise in rail infrastructure as well as its ability to handle complex, multi-trade projects.