Information on the Target

El Grupo CAF has acquired the 2.67% stake previously held by Sodena, a public body of the Government of Navarra, in Solaris Bus & Coach (Solaris), a company specializing in the development and manufacture of sustainable buses. With this acquisition, CAF now owns 100% of the capital of Solaris, which is recognized as a leader in zero-emission urban mobility solutions in Europe.

This divestment has allowed Sodena to recover its initial investment in the Vectia project, which has now been integrated into Solaris, resulting in an exit multiple of 1.3 for the public body.

Industry Overview in the Target’s Specific Country

The sustainable transportation sector in Spain has been experiencing significant growth, driven by increased demand for eco-friendly solutions and the transition toward urban mobility that prioritizes reduced emissions. Various factors contribute to this trend, including governmental initiatives and increased public awareness about climate change impacts.

Spain's commitment to sustainability is evident through multiple projects designed to enhance urban transport systems and reduce reliance on fossil fuels. Efforts are being made at both national and regional levels to promote electric vehicles, improved public transport infrastructure, and innovative mobility solutions.

The presence of well-established companies like CAF and Solaris in this sector demonstrates the robustness of Spain's sustainable transport landscape. Their innovative approaches not only address local market needs but also set benchmarks for international standards in sustainable mobility.

Furthermore, government support, along with European Union funding for green technologies, is fostering an environment conducive to research and development in sustainable automotive solutions. This outlook positions Spain as a pivotal player in the evolution of zero-emission transport technologies within Europe.

The Rationale Behind the Deal

This acquisition aligns with CAF's strategic goals of expanding its portfolio of sustainable transportation solutions. By consolidating its control over Solaris, CAF enhances its ability to innovate and develop comprehensive mobility solutions tailored to an evolving market.

CAF's commitment to advancing the sustainable transport sector in Navarra and beyond is bolstered by this acquisition, which will allow for improved resource allocation and synergy in operations, ultimately fostering greater technological advancements.

Information About the Investor

Grupo CAF is a prominent international leader in the integrated transport systems market, offering services in both rail (subways, trams, high-speed transportation, commuter services, light rail vehicles, locomotives, civil works, and electrification) and non-rail sectors, such as sustainable urban buses. With a turnover exceeding €4 billion, CAF has executed important projects across numerous countries worldwide.

The company employs over 16,000 people and operates production facilities in Spain, France, the United States, Brazil, Mexico, Poland, and the United Kingdom. Its extensive network of operations and solid financial standing make CAF a significant contributor to the global sustainable transport narrative.

View of Dealert

This acquisition by CAF of Solaris is viewed as a strategic move that not only strengthens its position in the sustainable transport sector but also enhances its operational capabilities. By controlling Solaris entirely, CAF will likely streamline decision-making processes, foster innovation, and improve project execution timelines.

The growing emphasis on green technologies and zero-emission solutions bodes well for CAF's investment, as public policy increasingly supports sustainable transportation initiatives. This deal reflects a forward-thinking approach that positions CAF favorably amid shifting market dynamics.

Moreover, with the integration of Solaris, CAF can expect to leverage shared expertise and resources, leading to opportunities for new product development and market expansion. While challenges remain in terms of competition and technological advancement, the strategic alignment within CAF’s existing portfolio indicates potential for long-term success.

In conclusion, the acquisition represents a positive investment opportunity for CAF, aligning with industry trends and supporting its overarching goal of being at the forefront of sustainable transport solutions.

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