Vossloh AG through its subsidiary Vossloh Australia, signed a contract with the international engineering enterprise Laing O’Rourke for the acquisition of the Australian rail infrastructure company Austrak. Closing is being aimed for in the third quarter of 2018.
The purchase price of the transaction as of the closing date is expected to amount to AUD 50.5 million (EUR32 million) and can increase to a maximum of AUD 54.5 million (EUR 34.6 million) over the course of the next two years, depending on business development.
In the future, Austrak will be part of the Tie Technologies business unit in the Core Components division.
The Supervisory Board of Vossloh AG has already approved the acquisition, but additional conditions must still be met for the acquisition to be completed. The transaction is above all still subject to merger control clearance by the Australian authorities.
“The acquisition of Austrak is another important step in our growth strategy. With this transaction, we are expanding our portfolio in Australia in the area of rail tracks and laying the foundation for synergies for both our customers and Vossloh,” Andreas Busemann, CEO of Vossloh AG said.
The Brisbane-based company produces, in several production facilities, switch ties and concrete elements for rail crossings in addition to track ties.
In the 2017/18 fiscal year, which ended on March 31, 2018, Austrak generated sales of AUD 52.3 million (EUR 33.2 million). In the next few years, the Australian market will offer good growth opportunities for Vossloh, particularly in view of significant mining projects in Western Australia as well as major infrastructure projects on the East Coast, Vossloh says.
Currently, Vossloh primarily sells switches and switch components in Australia. With the acquisition of Austrak, Vossloh will also be able to offer ties on the Australian market. Vossloh’s core business will be further strengthened and its market position in Australia, with its more than 40,000-km-long rail network, significantly improved.