Direct Track Solutions Sold to Swiss Railway Giant Schwihag AG

Dinnington-based Direct Track Solutions Ltd (DTS), a prominent supplier to the railway industry, has been acquired by Swiss company Schwihag AG in a strategic move to strengthen both companies’ presence in the UK market.

The sale, which involves an undisclosed sum, will see DTS continue trading under its existing brand, with no changes to its structure or personnel.

Founded in 2002 by Martin and Melanie Southwell, DTS has grown into a successful business, providing competitive supply chain solutions to the railway sector. After over two decades of steady growth, the Southwells sought a buyer who could carry the company forward. Schwihag AG, a Swiss firm with over 50 years of experience in rail components and fastening systems, was seen as the ideal fit.

Schwihag AG, based in Tägerwilen, Switzerland, was founded in 1971 and has a long-standing reputation for supplying innovative and well-proven trackwork components globally. The acquisition of DTS adds to Schwihag’s expanding portfolio, which already includes manufacturing facilities in Doncaster, UK, Leipzig, Germany, and Grandview, Missouri, USA, alongside regional offices in Valencia, Spain, and New Delhi, India.

In a joint statement, the Southwells commented on the sale, saying: “Having worked for 22 years building a successful business, we agreed that the time was now right to look for a buyer that could take the business to the next level. Schwihag AG, a global supplier of quality railway track products, ticked all the boxes. Schwihag AG is the perfect fit, enhancing the DTS brand and creating greater opportunities for all the staff. We are both delighted that the future of DTS is in good hands and we are confident that the business will go from strength to strength.”

Schwihag’s acquisition of DTS is expected to broaden the company’s range of products and services offered in the UK, and is seen as a strategic move to bolster its presence in the region. Karl-H Schwiede, president of the board at Schwihag Group, expressed enthusiasm for the continued collaboration: “We are excited to continue doing business with DTS and appreciate our continued partnership.”

Corporate finance advice for the transaction was provided to DTS by Andy Ryder and Adam Ames from Shorts, with legal counsel offered by Matt Ainsworth of Shakespeare Martineau. Schwihag’s legal representation came from Rebecca Robinson of Wake Smith.

Andy Ryder, corporate finance partner at Shorts, said: “We are delighted to have helped complete this transaction for Martin and Melanie. It has been a pleasure to work with them on this international transaction, and we look forward to hearing of Direct Track’s continuing success under Schwihag’s ownership.”

Matt Ainsworth, corporate partner at Shakespeare Martineau, added: “We are very pleased to have supported Martin and Melanie on the sale of Direct Track to Schwihag. Direct Track is yet another high-quality local business that has attracted overseas inward investment into the region. We wish the business all the success for the future.”

The deal represents another example of a high-quality UK business attracting international investment, highlighting the ongoing interest in the UK rail supply chain from global players. With the acquisition, Schwihag aims to capitalise on DTS’s established market position and enhance its service offerings within the UK rail industry.