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Deal News Transportation

& Logistics What's up in your

15. March 2017 market – a focus Research Center on deals activity

Deal News – Transportation & Logistics What's up in your market – a focus on deals activity, March 2017

Kuehne-Nagel looks Kuehne-Nagel Nakliyat, the Switzerland-headquartered logistics to take over Zet company, is looking to take over the Turkish logistics firm Zet Farma Farma Lojistik Hizmetleri. Turkey's Competition Authority announced that it has received an application to approve the takeover of Zet Farma by Kuehne-Nagel.

15.03.2017 Stock Exchange Announcement

SG-Trans denies SG-Trans, the Russian railway operator specializing in transportation of affiliation with petroleum and LPG products, has denied information about its Brunswick Rail affiliation with a possible buyer of Brunswick Rail, reported possible buyer Kommersant. The Russian newspaper cited information received from (translated) SG-Trans, explaining the company has no relation with the information provided by the Russian antitrust regulator FAS. FAS announced yesterday it had refused to approve an application of the British Virgin Islands-based Amalgam Rail Investments, for the acquisition of Brunswick Rail, the Russian freight railcar leasing company, the paper reported. FAS said that according to its information, the ultimate beneficiary of the proposed transaction is Ilya Belyaev, a member of the board of directors of SG-Trans. However, SG-Trans ensured that Belyaev was an invited company director, had exited the board of directors in 2016, and is not affiliated with the company shareholders, Kommersant reported. Amalgam Rail has already filed a complaint with the FAS, the paper reported. Amalgam Rail‘s complaint is being considered, the regulator told Kommersant. SG-Trans is going to send a refutation to FAS, the company confirmed to Kommersant. In early February, Brunswick Rail announced it found a buyer for the entire 100% stake in the company and that this buyer will be Amalgam Rail, the report continued. Amalgam Rail is owned by Brunswick Rail former CEO Vladimir Lelekov. The transaction was valued at USD 25m in previous reports.

14.03.2017 Kommersant

Lieferfactory Hermes Europe GmbH, the German package deliverer owned by the majority stake mail order and e-commerce company Otto Group, has announced the acquired by Otto's acquisition of the majority of Lieferfactory (Liefery) as part of a capital Hermes increase. Financial terms of the deal were not announced. Liefery is a (translated) privately owned start-up company specialized in delivering online and offline purchased goods on the same day it was being ordered. As previously reported Hermes has acquired 28.5% stake in Lieferfy in July 2015 for a reported valuation of EUR 10m.

09.03.2017 Company Press Release (Translated)

Deal News – Transportation & Logistics What's up in your market – a focus on deals activity, March 2017

Bpost no longer Bpost is no longer working on an acquisition of Dutch competitor working on PostNL PostNL, Bpost CEO Koen Van Gerven remarked in an interview with De acquisition; Sandd Tijd. Bpost made two separate approaches on the Dutch postal service in not a target 2016. Van Gerven remarked he's not working on the file at present but (translated) he is presented with potential smaller targets on a weekly basis, he said in the item. Sandd, a commercial Dutch postal firm is not a potential target for Bpost, as it employs a different business model compared to Bpost, the CEO said.

09.03.2017 De Tijd

AGRO Merchants AGRO Merchants Group, an Atlanta, Georgia-based provider of cold Group acquires storage and logistics solutions backed by Oaktree Capital Management, Cold Land from has acquired Cold Land from Portuguese private equity firms Inter- Inter-Risco and Risco and Portugal Ventures. Terms of the deal were not disclosed. Cold Portugal Ventures Land, a provider of cold storage and logistics services, is the parent company of Frissul and Frigomato, which together recorded a consolidated turnover of EUR 18.8m in 2015, with 215 employees, according to Inter-Risco's website. The group was touted as the leading cold storage operator in Portugal, offering 303,200 cubic meters of storage capacity. AGRO Merchants was formed in 2013 with backing by Oaktree. A report last year by industry trade publication Fruitnet said Agro Merchants was looking to build its position in Latin America in coming months, drawn by demand driven by the region's fruit export industry. Excerpt from the press release: AGRO Merchants Group, a global leader in cold storage and logistics solutions, today announced the acquisition of Cold Land SGPS SA from funds affiliated with Inter-Risco, a premier Portuguese private equity firm, and Portugal Ventures, a venture capital and private equity firm. Cold Land is the parent company of Frissul and Frigomato, which together offer 303,200 cubic meters of storage capacity or the equivalent of 55,700 pallet positions, making it the leading cold storage operator in Portugal and a key player in the Iberian Peninsula. This latest acquisition for AGRO expands its footprint in a key strategic region and significantly broadens its capabilities and service offerings throughout the food supply chain. The current management team, led by CEO Afonso Almeida, will continue to lead the business in Portugal.

07.03.2017 Company website

Deufol spun off Deufol SE [LOI:Xetra], the German packaging group, has sold their Activatis in MBO interest in Activatis GmbH in the course of an MBO-transaction led by Managing Director, Matthias Flörsch. Financial terms were not disclosed. Activatis (formerly Deufol Mitte GmbH) is a performer of logistic services with a strong focus on chemical logistics. According to the 2015 Annual Report, Deufol owns the 100% shares of Activatis which generated an annual sales of EUR 15.9m and had 361 employees. Press release: Deufol Group has sold their shares of Activatis GmbH. The reason for this transaction is the strategic focus on the business area Deal News – Transportation & Logistics What's up in your market – a focus on deals activity, March 2017

"Industrial Packaging" as well as additional services related to this business area. The spinoff of Activatis GmbH was carried out through a Management-Buy-Out (MBO) under the lead of the Managing Director, Matthias Flörsch. Activatis GmbH develops and operates as a system partner for custom designed logistics solutions along the supply chain and has more than 30 years of experience in the field of air freight handling and chemical logistics. The recently developed "Smart Logistic Approach" is set to optimize the digitalization and automatization of supply chain processes and is consequently focused on the realization of efficiency increases within Industry 4.0. The management team will be strengthened thru the former KPMG-Expert Thomas Fischer. In his new position as Chief Digital Officer, he will further push the development of the "Smart Logistic Approach".

07.03.2017 Company Press Release(s) (Edited)

Dutch national Nationale Spoorwegen (NS), the Dutch national railway, wants to sell its railway NS wants to retail activities as well as its regional concessions, reported Dutch daily sell retail activities, De Financiële Telegraaf. NS wants to focus on rail transportation on the regional main railway in The Netherlands. NS retail activities generated revenues concessions - report of EUR 359m in 2013. The yearly revenue of the entire rail company is (translated) around EUR 4.1bn. The company's works council disagrees with NS's strategy because it fears the railways are dismantling the strength of the company and is concerned about labour conditions for the company's 4,000 employees.

07.03.2017 De Financieele Telegraaf

Skoda The sale of Czech privately owned producer and supplier of railway and Transportation sale municipal transport vehicles, Skoda Transportation to Railway Rolling to go ahead despite Stock Corporation (CRRC) is most likely to materialize despite delays, delays - report reported Lidove Noviny. The Czech-language item cited an unnamed (translated) source close to negotiations, saying that the agreement to sell Skoda to CRRC, a Chinese state-owned rolling stock manufacturer, will be signed within six months. The report noted that the delays took place as CRRC was not happy with its former due diligence advisors and had changed the advisory firm. However the identity of the advisors were not disclosed in the article. Skoda Transportation is owned by four private individuals and its 2015 sales reached CZK 18.3bn (EUR 677.1m).

07.03.2017 Lidove Noviny

Serbia Railway The Serbian government is planning to sell assets of its railways, assets valued at Tanjug.rs reported yesterday, citing Zorana Mihajlovic, minister for EUR 129m to be construction, transportation and infrastructure. She said the value of the privatized disposable assets, following the breakdown of Serbian Railways into four (translated) units, is around RSD 16bn (EUR 129.4m). After a meeting with representatives of the International Monetary Fund, the minister said the government at its next cabinet meeting will decide about a tender to Deal News – Transportation & Logistics What's up in your market – a focus on deals activity, March 2017

find directors for the four companies: Srbija voz, Srbija kargo, Infrastruktura železnice Srbije and Zeleznice Srbije.

01.03.2017 Tanjug

RZD considering RZD, Russian state-owned railway company is considering a possibility possibility of selling of selling about a 25% stake in GEFCO to a portfolio investor, a Russian about 25% in newswire reported. Speaking to reporters, RZD President Oleg Belozerov GEFCO to a has said that the company is considering whether it needs the 75% stake portfolio investor, in GEFCO, the French logistics and transportation company, or it could Summa keep only the controlling stake, TASS reported on 27 February. Summa uninterested Group is uninterested in acquiring GEFCO shares from RZD, the (translated) - RZD diversified group owner and Chairman of the Board of Directors, privatisation not Ziyavudin Magomedov, told TASS. RZD acquired a 75% stake in GEFCO planned according in 2012 from PSA Peugeot Citroen [EPA:UG], which remains the owner to senior official of a 25% stake in the company. TASS also reported that the privatisation of Russian Railways (RZD), the state-owned railway operator, is not planned, citing a senior official. Sergei Ivanov, Special Presidential Representative for Environmental Protection was quoted by TASS, speaking in an interview on the sidelines of the Sochi Investment Forum, on 28 February. According to Ivanov, the government has decided it does not see any economic or any other sense in the sale of even a small stake in RZD, the item reported. RZD President Oleg Belozerov had earlier said that most likely, the company will not be privatised in 2017, the report continued. RZD, in which the government owns a 100% stake, posted RUB 1tn (USD 17.2bn) revenue and RUB 44.9bn (USD 773.6m) net profit in 1H16, in accordance with IFRS, according to an item in Russian daily Vedomosti.

01.03.2017 Tass

FESCO faces Capital Management Company (abbreviated UK Kapital) has filed an bankruptcy petition application in the Arbitration Court of Moscow to declare bankrupt from Capital Russia's Far Eastern Shipping Company (FESCO) [FESH.ME], reported Management Kommersant.. The application for bankruptcy was filed on 27 February, Company the Russian daily reported, which quoted UK Kapital General Director (translated) Vadim Sokov. He explained that UK Kapital owns ruble-denominated, DVMP BO-02 bonds of FESCO, on which the payment, due in May 2016, was not made. FESCO's main shareholders are Ziyavudin Magomedov's Summa Group (32.5%) and GHP Group (23.8%), the item reported. The debt of FESCO group under two Eurobond issues stands at USD 655m and the debt under ruble bonds stands at RUB 7bn (USD 120.6m), the report added.

01.03.2017 Kommersant

Deal News – Transportation & Logistics What's up in your market – a focus on deals activity, March 2017

RZD may get 40% in Russian state-owned railway operator RZD may receive 40% stake in a SPV holding Mechel special project company (SPV) into which metals and mining group and Gazprombank Mechel [NYSE: MTL] [MOEX:MTLR] and Gazprombank will transfer rights to Ulak-Elga the Ulak-Elga railroad asset, Russian newspaper Kommersant reported, railroad citing RZD President Oleg Belozerov. Belozerov said that Mechel and (translated) Gazprombank had made a proposal to RZD to take a 40% stake in the SPV. A Vedomosti article also cited Belozerov as saying that Mechel, RZD and Gazprombank are discussing a possibility of taking the railroad into concession. A source close to the negotiations also told Vedomosti that a sale of the railroad to the pool of investors for about RUB 60bn- RUB 70bn (USD 1.02bn - USD 1.19bn) is another option that is being discussed. The 321 km Ulak-Elga railroad was built by Mechel to link the Baikal-Amur Mainline with its Elga coal deposit. Mechel is interested in a deal that would allow it to compensate the costs incurred while constructing the railroad and also ensure further funds and increase in the railroad’s capacity, Vedomosti continued, citing a Mechel spokesperson. The license for the Elga deposit is owned by Elgaugol, the Ulak-Elga railroad is held by Elga-Doroga, while the railroad operator is Mechel Trans Vostok, said Kommersant. In all these three companies Mechel owns a 51% stake, while Gazprombank owns a 49% stake in each. The lender received the 49% stakes in 2016 during restructuring Mechel's debt, the paper reported.

28.02.2017 Kommersant

Transcontainer: Russian diversified group Summa co-owner Ziyavudin Magomedov Summa co-owner Z. believes the price proposed by the state-run railway company RZD for its Magomedov controlling stake in intermodal freight transport operator believes improper TransContainer [MCX: TRCN] is not right, reported Vedomosti. The price proposed by Russian daily cited Magomedov, noting that in terms of RZD for controlling TransContainer’s EBITDA, probably, the correct evaluation is RUB 35bn stake (translated) (USD 598.1m) for the entire company. During the past 7-8 months the estimation increased to RUB 50bn (USD 854.4m), he added. The paper also reported that the single government’s position on the fate of the stake will be worked out during 1.5 months. RZD owns a 50% stake + 2 shares in TransContainer via logistics company OTLK, as reported. Summa Group is among TransContainer’s shareholders

28.02.2017 Vedomosti

GTI Logistics GTI Logistics, a transport company in Romania, has been acquired by acquired by Nunner the Dutch transport company Nunner Logistics, the Dutch daily Logistics – report Eindhovens Dagblad reported, citing Nunner CEO Erwin Cootjans. The (translated) deal value was not mentioned. GTI Logistics has four different branches in Romania and employs 80 staff, the report said. With this takeover Nunner Logistics employs 350 staff. In 2015, Nunner had acquired Lackner & Scharz in Romania.

24.02.2017 Eindhovens Dagblad

Deal News – Transportation & Logistics What's up in your market – a focus on deals activity, March 2017

Franz Mueller Franz Mueller Soehne Internationale Spedition [FMS], a German freight Internationale company, has filed for insolvency at a regional court in Saarbruecken. A Spedition files for German-language statement issued via the court said that Michael J.W. insolvency Blank, a lawyer based in Voelklingen, has been appointed as preliminary administrator. Michael J.W. Blank is a partner at German law firm Fischer Krauter Blank. Privately owned FMS generated between EUR 10m and EUR 25m revenue in 2014, according to a corporate information portal.

23.02.2017 Regulatory Authority Press Release (Translated)

China Rail may China Rail may become a fourth partner along with Russian Railways become fourth (RZD), Belarusian Railway and National Company Kazakhstan Temir partner in OTLK Zholy in United Transport and Logistics Company (OTLK/UTLC), a rail (translated) container transportation services provider, reported Russian newspaper Vedomosti. OTLK may find partners in the EU and China, according to comments by company First Vice-President Erzhan Zhakishev. It is possible to consider in future including China Railway, or its subsidiary China Railway Container Transport in the OTLK shareholder agreement, Zhakishev said, as quoted by TASS agency. Vedomosti has said it was unable to get in touch with China Railway representatives. OTLK's shareholders include Russian Railways (RZD) with a 99.8% stake, Belarusian Railway (0.1%) and Kazakh national railway operator National Company Kazakhstan Temir Zholy (0.1%). The item reported that the stakes in OTLK were formed based on the market value of the assets included in the company, totalling RUB 39.76bn (USD 683.2m). OTLK President Alexey Grom, cited in the report, believes that attracting a Chinese partner to the company could be useful for business development and increasing the pace of traffic, but it must be carefully analysed. China Railway is OTLK’s key partner, he noted. The scheme of the participation of the Chinese company in OTLK is unclear, the paper reported. The key decisions about the scheme of such cooperation will be taken by the shareholders, Grom also said, adding that the management had submitted proposals to shareholders. In 2015, OTLK posted RUB 2.1bn revenue the paper reported citing Spark-Interfax service database.

22.02.2017 Vedomosti

Mercitalia Logistics Mercitalia Logistics, the Italian logistics business of state-owned Italian has EUR 250m to railway operator Ferrovie dello Stato (FS), aims to make acquisitions, make acquisitions according to the Italian newspaper CorrierEconomia. The report cites (translated) Mercitalia’s chief executive Marco Grosso, who said that his company has EUR 250m to make acquisitions (in 10 years) in order to strengthen its market position. Grosso also said that in the long-term Mercitalia could look for partners. Mercitalia Logistics has a turnover of EUR 1bn in 2016 and aims to generate a EUR 2bn turnover in 2026.

20.02.2017 Corriere della Sera (CorrierEconomia)

Deal News – Transportation & Logistics What's up in your market – a focus on deals activity, March 2017

Uber, Google The UK government is exploring plans which could see technology targeted as equity groups including Uber and Google [Nasdaq:GOOGL] become equity partners in HS2 partners in the HS2 high-speed trainline project, The Sunday Times trainline - report reported. Three separate industry sources cited in the report said such cash-rich and innovative companies are being targeted to acquire minority stakes in giant consortia which would tender for the right to operate trains once a new franchise is launched in 2019. The transport department confirmed market leaders in customer service and innovation are being sought to enhance the passenger experience, the item reported. The government wants to ensure HS2, which is the largest construction project in the UK, is not rendered obsolete by driverless cars or other new technology before its planned launch in 2026, the item reported. Innovative companies from digital spin-outs to internet retailers are being targeted to invest, the report said. Uber, the taxi-service app based in San Francisco, Worldline [EPA:WLN], the French internet payments facilitator, and the technology subsidiary of British auto group McLaren all attended an industry event for HS2 franchise bidders in London in January, the item reported.

19.02.2017 Sunday Times

Network 4 Home The Rhenus Group has expanded its network in Great Britain by taking Delivery sold to over Network 4 Home Delivery. Rhenus Home Delivery, the specialist Rhenus for final deliveries to customers, acquired the British service provider for two-man handling, which has its headquarters in Manchester, on 1 February. In addition to having its headquarters in Manchester, the company has other business sites in Milton Keynes and in the London area. The acquisition of the service provider, which was founded more than ten years ago, represents the market entry for Rhenus Home Delivery in Great Britain. “The e-commerce business is growing in Great Britain far faster than in the rest of Europe and this offers us the opportunities to introduce our logistics expertise. We can cover the complete British market with Network 4 Home Delivery and offer complete international solutions and additional services like customs clearance for goods to customers within the Rhenus Group’s network,” says Nicolas Rottmann, Managing Director of Rhenus Home Delivery. Network 4 Home Delivery mainly handles the delivery and installation of beds and mattresses at the moment – but also white goods and furniture items. The company also provides environmentally-friendly disposal and return services for mattresses and old furniture.

17.02.2017 Company Press Release(s)

Necotrans hires Necotrans, a French logistics and international transport company, has Rothschild to find mandated Rothschild to assist it in finding a minority investor or buyer, buyer - sources said three sources familiar with the situation. A handful of buyers, mostly strategic, have already expressed an interest in taking over Necotrans, two of the sources said. The family owned business, which operates mainly in Africa, secured an extension of its debt at the end of Deal News – Transportation & Logistics What's up in your market – a focus on deals activity, March 2017

last year under conciliation, granting it the necessary breathing space to look for an investor, the sources noted. Necotrans was founded by Richard Talbot in 1985. It specialises in freight forwarding, oil and mining logistics, port terminals activities, equipment distribution. The company generated EUR 954m turnover in 2013 and employed more than 3,500 people in 40 countries, according to its website. Necotrans and Rothschild declined to comment.

17.02.2017 Proprietary Intelligence

SLG-Operating Russian container transportation company RUSCON announced on 13 acquired by February that it has acquires the Russian logistics company SLG- RUSCON Operating: SLG-Operating is one of Russia’s largest logistics companies, offering warehouse and logistics services to a wide variety of customers including Microsoft, Pepsi, Danone,Castorama, Kimberly-Clark, Haier, Cargill and many others. It was named Best Logistics Operator in Russia at the 2014 EALA (Euro-Asian Logistics Association) Awards. Vladimir Bychkov, CEO RUSCON, says: “This acquisition is a significant step for our business into the wider logistics market. SLG-Operating has unique expertise in operating A­-class warehouse complexes and is a well- known brand at the logistics sector. It is a valuable addition to our group.” SLG-Operating has a 60,000 sq metre complex at Chekhov City, near Moscow, with a capacity of more than 85,000 pallets, including climate-controlled sections. The acquisition is part of RUSCON’s strategy to expand its services in the transport and logistics sector so it can offer the expertise and experience which the Russian import and export market increasingly needs.

17.02.2017 Company website

BLS Cargo 45% SNCF Logistics, the French freight transport operator part of SNCF stake to be acquired Group, is set to acquire a 45% stake in BLS Cargo, the Swiss rail cargo by SNCF carrier, according to a company press release. The statement said that (translated) the sale has to be approved by the competition authorities. BLS will remain the majority shareholder with a 52% stake, while The Ambrogio Group maintain a 3% stake in BLS. BLS Cargo achieved a turnover of EUR 174.9m in 2016 and an EBITDA of EUR 1.9m, concluded the note.

17.02.2017 Company Press Release(s) (Edited)

Tipes acquired by Tipes, an Italian road and rail logistics company in administration, has Coop Paratori been acquired by road transport cooperative Coop Paratori, Italian- (translated) language daily Milano Finanza reported. The report cited Angelo Panzeri, the chairman of Tipes, who did not disclose financial terms. The report said that Tipes specialises in moving steel and iron products.

17.02.2017 Milano Finanza daily edition

Deal News – Transportation & Logistics What's up in your market – a focus on deals activity, March 2017

Shears Brothers Shears Brothers, a Bournemouth, UK-based logistics, courier, freight purchased by Pall- and road haulage services provider, has been purchased by domestic Ex competitor Pall-Ex, news portal Insider Media reported citing the buyer's managing director Kevin Buchanan. Shears Brothers recorded GBP 7.65m turnover in 2015.

16.02.2017 Insider Media

Deal News – Transportation & Logistics What's up in your market – a focus on deals activity, March 2017

Contact Jörg Bredy Andreas Mackenstedt Moskauer Straße 19 Friedrich-Ebert-Anlage 35-37 40227 Düsseldorf 60327 Frankfurt am Main [email protected] [email protected] Tel.: (0211) 981 2852 Tel.: (069) 95 85-5704

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