Pamplona-backed Beacon acquires Ascendos

Alice Tchernookova
16 May 2016

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London- and Boston-based locomotive lessor Beacon Rail Leasing, backed by Pamplona Capital, has acquired Ascendos Rail Leasing for an undisclosed amount.

Beacon acquired Luxembourg-based Ascendos from current owners Everest Babcock & Brown Opportunities Fund, BBSFF EU Rail Lessor (a subsidiary of Global Investments listed on the Singapore Exchange) and BOSSAF Rail.

Debt financing for the transaction has been provided by ING Bank and Deutsche Bank. The transaction is expected to complete in Q2 2016, and is subject to customary conditions, including clearance from the German competition authorities.

The acquisition of Ascendos will allow Beacon to continue to build its portfolio of locomotives. Ascendos's portfolio of rolling stock will complement its existing fleet of locomotives and expand its presence in the European passenger train market.

Pamplona acquired Beacon in May 2014 from BTMU Capital Corporation, a subsidiary of Mitsubishi UFJ Financial Group, in a deal valued at around $450m. Ted Gaffney, president of Beacon, continued to lead the company supported by the existing management team.

Company
Based in Luxembourg, Ascendos is a European locomotive and rolling stock leasing company, formed in 2004 from the European operations of British rolling stock lessor Porterbrook.

Focusing on continental Europe, the company has additional offices in London and Munich. Its current portfolio includes includes 35 locomotives and 100 freight wagons on lease in Belgium, the Netherlands and Germany, 35 passenger train units on lease in Germany, and 67 double decker coaches on lease in Denmark.

Based in Boston and London, Beacon manages a diverse portfolio of freight and passenger train rolling stock and leases these assets to operating companies in the UK, continental Europe and North America. It currently owns and manages a fleet of 190 locomotives, 944 freight wagons and 20 passenger train units. Beacon has a satellite office in Rotterdam.

People
Pamplona Capital – Robert Warden (partner).

Advisers
Equity – Berwin Leighton Paisner (legal); Lowenstein Sandler (legal).
Vendor – Clifford Chance (legal).