TRAXIÓN ANNOUNCES THE ACQUISITION OF V-MODAL

Mexico City, September 19, 2022 – Grupo Traxión, S.A.B. de C.V. (“Traxión” or the “Company”) (BMV: TRAXION A), a leading transportation, mobility, and logistics company in Mexico, announces that it has acquired V-MODAL, one of the most important intermodal marketing companies for rail services in Mexico, with more than 12 years of leadership. The company is one of the pioneers of such business and is one of the strongest players of intermodal and general freight services through rail with a 100% asset-light focus and a virtually zero CapEx model.

The transaction price was Ps. 102.5 million for 90% of the company, of which Ps. 62.5 million were paid in cash and the rest with TRAXION shares of stock. V-MODAL is totally debt-free and will be integrated immediately to TRAXIÓN’s platform. Management budgeted revenues of Ps. 520 million for 2022 with an EBITDA margin of approximately 8%. TRAXIÓN expects to realize a series of synergies and efficiencies, especially on the commercial front. TRAXIÓN expects to grow significantly V-MODAL’s revenue base, mainly through cross-selling with current clients and optimize their supply chain expenses.

With this acquisition, TRAXIÓN significantly strengthens its presence in the rail segment, which represents a key element within supply chains, and a very important complement to its service portfolio, while contributes to its asset-light expansion strategy. The services rendered by V-MODAL optimize the transportation expenses of its clients, with total rail coverage in Mexico and services to the U.S. and Canada.

“With the acquisition of V-MODAL we complement our service portfolio with rail, through a key player with deep knowledge of the business in Mexico. V-MODAL is a successful and profitable company, founded by experts with almost three decades of experience in the rail segment. For TRAXIÓN, this represents very profitable transaction, and a great opportunity to expand its supply chain services though an asset-light approach.” – commented Aby Lijtszain, executive president and founder of TRAXIÓN.