Wagon plc
“The new capital from WL Ross and W. P. Carey comes at an ideal time. It enables us to fund our growth initiatives, support the company’s recent contract wins with IVECO and Porsche, and repay existing debt facilities.”
Richard Cotton, Chief Financial Officer, Wagon plc
Recapitalization and Growth Financing
August 2008
Founded in 1918 as a railway wagon repair business, Wagon now focuses on the design, engineering and manufacture of vehicle body structures and closure systems and is one of the leading European suppliers to the automotive industry. Its top customers include Peugeot, Renault, Daimler, and Volkswagen. Listed on the London Stock Exchange (LSE: WAGN), Wagon employs 6,500 people across 22 plants in 10 countries.
Situation: Wagon was looking to recapitalize its balance sheet and fund its growth initiatives.
Financing: The W. P. Carey Group purchased and leased back Wagon’s manufacturing sites in Waldaschaff and Nagold Germany for $58 million while WL Ross contributed approximately $70 million of new capital via a special rights offering of Wagon common shares.
Outcome: The combined $128 million of new capital from the W. P. Carey Group’s sale-leaseback and WL Ross’s investment is enabling Wagon to repay its existing debt as well as look and fund new growth initiatives.
Noted billionaire investor Wilbur Ross, who will see his firm’s position in Wagon increase from 15% to well over 75%, commented, “We were supportive of the sale-leaseback with W. P. Carey as an alternative method of raising capital and enhancing Wagon’s long-term value.”
