Laing O’Rourke’s concrete rail sleeper manufacturer, Austrak, has been acquired by rail technology company Vossloh AG through its subsidiary Vossloh Australia.
The purchase price of the transaction as of the closing date is expected to be $50.5 million and can increase to a maximum of $54.5 million.
The transaction is still subject to merger control clearance from the ACCC, with a closing date aimed to be the end of the third quarter of 2018.
The company has produced more than 22 million sleepers and has supplied some of the country’s most complex and demanding railways such as Alice Springs to Darwin, iron ore railways in the Pilbara for BHP, Rio Tinto and FMG, as well as suburban and freight lines in NSW, Victoria and Queensland.
Vossloh has recognised Austrak’s position as a leader in the design and manufacture of pre-stressed concrete sleepers, bearers and associated products, which will complement and enhance its existing operations.
Vossloh primarily sells switches and switch components in Australia. Withe the acquisition, the company will also be able to offer ties on the Australian market.
Laing O’Rourke’s Australia Hub Managing Director Cathal O’Rourke said this marked a positive step for Austrak’s future, and 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.
Vossloh AG CEO Andreas Busemann said the acquisition of Austrak is another important step in the company’s 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,” Mr Busemann said.
Austrak has stated there will be no impact on current trading, orders or operations at the company.