Transdev Said Selling German Unit Worth 400 Million EurosJacqueline Simmons and Tara Patel
Transdev, the mass-transit operator partly owned by Veolia Environnement SA, is selling its German operations as part of a broader asset-disposal plan, two people with knowledge of the matter said.
The company may be valued at about 400 million euros ($513 million) including debt, one of the people said. Transdev, which this month agreed to sell its eastern European business to Deutsche Bahn AG, may attract industry bidders from across Europe and as far away as Singapore, said the person, who asked not to be identified because the process is private.
Transdev, renamed from Veolia Transdev, plans to lower debt, sell assets and withdraw from some countries in a bid to raise profitability. Through the reorganization, the company will reduce the reach of its bus, rail and tramway activities reduced to about 17 countries from as many as 27.
Veolia spokeswoman Sandrine Guendoul declined to comment.
The German unit is expected to have earnings before interest, tax, depreciation and amortization of at least 50 million euros, including potential contracts won through the end of the year.
Veolia Transdev was created in 2010 when French state-owned bank Caisse des Depots et Consignations and Veolia Environnement SA agreed to merge their transport units to create the world’s biggest private operator. They had previously planned an initial public offering.
Transdev has said it’s prepared to sell assets with revenue of about 1.5 billion euros that include rail and bus businesses in Germany, Sweden, Finland, Belgium and the Netherlands.
Lazard Ltd. and Credit Agricole SA are advising on the sale, one of the people familiar with the process said. Representatives for the banks declined to comment.