Vossloh Australia has signed a contract with Laing O’Rourke to acquire Australian rail sleeper manufacturer Austrak.
Headquartered in Brisbane, Austrak has facilities in several states producing concrete sleepers, switch sleepers and concrete elements for rail crossings.
In the 2017/18 fiscal year, the company generated sales of A$52.3 million.
Vossloh said that, in the next few years, the Australian market will offer good growth opportunities, particularly in view of significant mining projects in Western Australia as well as major infrastructure projects on the east coast.
With the acquisition of Austrak, Vossloh – which primarily sells switches and switch components in Australia – will also be able to offer ties in the country.
The deal, already approved by the board of Vossloh, is valued at A$50.5 million and can increase to a maximum of A$54.5 million over the course of the next two years, depending on business development.
Vossloh CEO Andreas Busemann said: “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.”
The deal is still subject to merger control clearance by the Australian authorities.
If the transaction goes ahead it is expected to close in the third quarter of 2018 from which point Austrak will become a part of the tie technologies business unit in Vossloh’s core components division.