Vossloh AG announced that it has successfully completed the acquisition of the Australian concrete ties manufacturer Austrak, through its subsidiary Vossloh Australia Pty Ltd.
“The acquisition of Austrak marks another milestone in our growth strategy. We are very pleased that the acquisition is completed and welcome Austrak to the Vossloh Group,” Andreas Busemann, CEO of Vossloh AG, said.
All the necessary closing conditions were authorized, including merger control clearance by the Australian authorities.
The contract for the acquisition of Austrak was signed in August 2018, with the former owner Laing O’Rourke.
According to the announcement in August, the value of the transaction was AUD 50.5 million (USD 37 million) with a AUD 54.5 million (almost USD 40 million) increase over the course of the next two years, depending on business development.
This acquisition serves to expand the company’s product portfolio in the Australian market by concrete ties and increase Vossloh’s vertical integration in the Australian rail infrastructure business.
In the future, Austrak will be part of the Tie Technologies business unit in the Core Components division.
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 (USD 38 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 said.
In Australia, Vossloh primarily sells switches and switch components. 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.