UK transport company First Group has sold its rail freight business GBRf for £31M to Groupe Eurotunnel.
The UK’s third largest rail freight operator, GBRf employs 300 people and transports coal, chemicals and other materials around the country.
Jacques Gounon, chairman and chief executive of Eurotunnel, stated: “Eurotunnel has always been a major link between the UK and France. The acquisition of GBRf is a further expression of our commitment to the United Kingdom and of our confidence in the potential that it holds.
"Growing concerns about the environment and the increasing need for freight transport over both long and short distances mean that rail freight is a buoyant market”.
This acquisition, completed without any increase in debt, is in line with the Group’s development strategy which, confident that the sector will continue to expand, aims to develop a leading position in the European rail freight market in the future.
Chief executive of First Group, Sir Moir Lochhead, said: "The disposal of GBRf is consistent with our strategy of focusing on our core businesses."
