Vossloh expands product portfolio in Australian growth market with the acquisition of the tie manufacturer Austrak
Vossloh AG signed a contract today through its subsidiary Vossloh Australia Pty Ltd. with the international engineering enterprise Laing O’Rourke for the acquisition of the Australian rail infrastructure company Austrak Pty Ltd. (“Austrak”), thereby further expanding its position as a leading global rail infrastructure provider.
Austrak is the leading manufacturer of concrete ties in Australia. In several production facilities in various Australian states, the company produces switch ties and concrete elements for rail crossings in addition to track ties. The company headquarters is in Brisbane, which is located on the East Coast of Australia. In the 2017/18 fiscal year, which ended on March 31, 2018, Austrak generated sales of AUD 52.3 million (the equivalent of around €33.2 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.
The purchase price of the transaction as of the closing date is expected to amount to AUD 50.5 million (the equivalent of around €32.0 million) and can increase to a maximum of AUD 54.5 million (the equivalent of around €34.6 million) over the course of the next two years, depending on business development. The Supervisory Board of Vossloh AG has already approved the acquisition. Additional conditions must still be met for the acquisition to be completed. The transaction is above all still subject to merger control clearance by the Australian authorities. Closing is being aimed for in the third quarter of 2018.
In the future, Austrak will be part of the Tie Technologies business unit in the Core Components division.
As of today, Vossloh primarily sells switches and switch components in Australia. With the acquisition of Austrak, Vossloh will also be able to offer ties on the Australian market. In addition, vertical integration in the Australian switch business will increase since it will be possible to produce ties internally that had been purchased previously externally. With the integrated product portfolio of switches and ties, Vossloh will be in a position to offer customers in Australia a customized product range with short delivery times. As a result, Vossloh’s core business will be further strengthened and its market position in Australia, with its more than 40,000-kilometer-long rail network, significantly improved. Also in consideration of its profitability, Austrak fulfills Vossloh’s expectations for its core divisions.
Andreas Busemann, CEO of Vossloh AG: “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.”
Werdohl, August 3, 2018
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Vossloh is active in rail technology markets worldwide. The Company’s core business is rail infrastructure. The Group activities are organized into the three divisions of Core Components, Customized Modules and Lifecycle Solutions. In the 2017 fiscal year, Vossloh achieved sales of about €920 million with over 3,900 employees.