Coote to create rail services giant with South Spur buy

<p>Perth engineering, manufacturing and logistics firm Coote Industrial has agreed in principle to buy train sector company South Spur Rail Services Group for $25m, Coote said yesterday (Monday, March 26).</p> <p>The combined business, to be called Coote Industrial Rail Division, will focus on mining-based and east coast rail infrastructure development.</p> <p>It will offer training, accreditation, work-train and shuttle-train locomotives, track-building and maintenance, equipment overhaul, locomotive overhaul and rebuilding engineering services and labour hire to the sector.</p> <p>&#8220We believe in addition to South Spur Rail Services’s own substantial rail growth potential, the acquisition will put Coote Industrial significantly ahead of its strategy for growth in the rail servicing, maintenance and refurbishment business,&#8221 chief executive Mike Coote said.</p> <p>The purchase, $11m of which will be in shares, should be completed by June 29 and will leave Coote 31% geared.</p> <p>The company, which expects to continue growth by acquisition, expects turnover to rise from $56.5m to $125.9m. </p> <p>Coote listed last December and recorded a first-half profit of $3.1m.</p> <br />