Global rail infrastructure specialist Vossloh has bought Australian sleeper manufacturer Austrak from Laing O’Rourke for roughly $50 million.
Austrak said on August 6 it would be acquired by Vossloh.
Founded in 1980, Austrak has been a fully-owned subsidiary of Laing O’Rourke since 2006.
The manufacturer has produced more than 22 million sleepers for the Australian market, with clients including BHP, Rio Tinto and FMG.
It generated $52.3 million in sales in the 12 months ending March 31, 2018.
Vossloh will pay roughly $50.5 million to acquire Austrak, but this can increase to $54.5 depending on its performance over the next two years.
Subject to competition clearance, Vossloh aims to close the deal in the third quarter of 2018. Austrak will be added to its Tie Technologies business unit.
Vossloh believes the Australian market offers good growth opportunities, particularly via significant mining projects in Western Australia, and major infrastructure projects on the East Coast.
“The acquisition of Austrak is another important step in our growth strategy,” Andreas Busemann, CEO of Vossloh said.
“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.”
Cathal O’Rourke, managing director of Laing O’Rourke’s Australia Hub, said the sale was a positive one for Austrak’s future.
“We are confident the organisation will benefit from the integration into a broader rail products business that is committed to growing its manufacturing operations in Australia and internationally.”