REUBEN BROTHERS TEAM UP WITH IPE TO FUND ACQUISITION OF EUROPEAN RAIL SPECIALIST

27 May 2003

May 27, 2003: The British Reuben brothers have provided the funding for the acquisition of a majority stake in the rail transportation specialist, ERMEWA Group.

ERMEWA Group is the world's second largest provider of tank container rentals and Europe's second largest provider of specialised railcars as well as support logistical services. It has an annual turnover of approximately 400 million euros.

ERMEWA was established in 1957 by Jaques Bory, who died in 2001. His death has lead to the sale of the company. A 49.6 per cent stake of ERMEWA was acquired by SNCF Participations, the investment vehicle of the major French railway company, SNCF. The remaining 50.4 per cent went to the Paris-based private equity firm, Investors in Private Equity (IPE), backed by the Reuben brothers. This deal demonstrates the Reubens' willingness to invest in solid asset-based businesses throughout Europe.

ERMEWA Group is based in Geneva and operates in 20 countries around the world and employs 750 people, with the largest operating company being in France. The company provides specialist rail transport to a range of industries including chemicals, petroleum and gas, cosmetics, foodstuffs and steel. Such clients demand total quality and absolute security in the transport of raw materials.

The new owners want to grow the company by focussing on the two core businesses of specialised railcars and the tank containers division as the European market for rail logistics opens up to competition.

Credit Agricole Indosuez provided senior debt for the deal and UBS introduced the Reuben Brothers to the transaction.

For further information, please contact
Charles Stewart-Smith on 0207 618 9100