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Vossloh snatches up Austrak
Posted on Monday, 06 August 2018 15:00
In an effort to expand its portfolio into the international rail sector, Vossloh has announced that through its subsidiary, Vossloh Australia, it is to buy rail infrastructure company Austrak for AUD 50.50 million (USD 37.28 million).
Under the terms of the transaction, the purchase price could increase to AUD 54.50 million dependent on business development.
Subject to merger control clearance and additional conditions, the deal is expected to complete in the third quarter of 2018.
Austrak claims to be the leading manufacturer of concrete ties across Australia, alongside producing key components such as switch ties and concrete elements for rail crossings.
In the financial year ending 31st March 2018, it achieved sales of AUD 52.30 million.
As a result of Austrak’s position on the Australian market, Vossloh gains further access into the rail infrastructure industry, as well as expanding its product range internationally.
The buyer will also be able to increase and sustain its client base, as the deal will enable it to produce ties internally and ensure a short delivery window for customers.
Strengthened by the purchase, the Australian market will prove beneficial for the company’s growth in the next few years due to its mining projects in Western Australia, as well as operations on the East Coast.
Headquartered in Werdohl, Germany, Vossloh claims to be a leading global provider in the rail infrastructure sector.
Organised into three divisions: core components, customised modules and lifecycle solution, its variety of products range from rail fastening systems, concrete ties, signalling systems to just-in-time logistics that provide quick rail replacement shipments.
Vossloh employs over 3,900 staff and in the financial year ending 31st December 2017, generated revenue of EUR 918.3 million.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 50 deals targeting railroad rolling stock manufacturing providers announced worldwide since the beginning of 2018.
Alstom’s acquisition in March of Siemen’s rail and signalling asset represents the largest of these transactions in a deal worth USD 7.41 billion.
© Zephus Ltd