Suttons Group to establish its business amongst top 10 global tank container operators
Suttons Group, the British leading logistics provider to the bulk liquid, gases and powders sectors, will strengthen its position worldwide. In the coming months, it will become one of the top 10 global tank container operators. This will be possible due to the acquisition of VTG Tanktainer, the well-known German specialist in leasing tank containers and arranging dedicated logistics services.
Suttons International, a part of the family-owned Britain-based Suttons Group, has purchased VTG Tanktainer from VTG, the Germany-based international wagon hire company with a fleet of over 94,000 vehicles. The dedicated agreement was concluded between the parties last week. “This acquisition will strengthen our geographical scale and give us a strong presence in new markets to better serve our customers, as well as provide greater opportunities for all staff. It will firmly establish our business amongst the top 10 global tank container operators and will be integrated into our existing, robust management structure,” said John Sutton, managing director of Suttons International & CEO of Suttons Group.
As for VTG, the deal means a stronger focus on the leasing business. “It also ensures the operating business meets our long-term profitability expectations both during and beyond the coronavirus crisis,” added Oksana Janssen, COO at VTG for Eurasia & Far East.
Details of the deal
According to the agreement, Suttons International will acquire the overseas ISO tank containers, personnel, and customer contracts of VTG, including the company’s interests in a joint venture with Mission Line in Brazil. However, the Chinese assets of VTG Tanktainer are excluded from the deal: VTG will continue to control its share in COSCOVTG Tanktainer, a joint venture with COSCO Shipping that is dedicated solemnly to the domestic Chinese market.
It is worth noting the deal will be completed after the interim period. It will last for several months and suggests a few key features: VTG will continue to manage the tank containers, personnel, and customer contracts while Suttons International and VTG will jointly communicate during this period with all personnel, customers, suppliers and agents over the transitional plans and ongoing relationships. The transition is required due to the seamless and reliable merger of two companies and for their further development as one entity.