Laing O'Rourke has sold its concrete rail sleeper manufacturing business for A$50.5 million.

Austrak was founded in Australia in 1980, and since 2006, has been a fully-owned subsidiary of Laing O'Rourke.

Austrak has produced more than 22 million sleepers, supplying 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.

In the 2017-18 fiscal year, which ended on March 31, 2018, Austrak generated sales of $52.3 million.

On August 3, German rail technology company Vossloh AG, through its subsidiary Vossloh Australia, signed a contract to acquire Austrak.

While the purchase price of the transaction as of the closing date is expected to amount to $50.5 million (the equivalent of around €32.0 million) and Vossloh said it could increase to a maximum of $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 but additional conditions must still be met for the acquisition to be completed. The transaction is still subject to merger control clearance by Australian authorities. Closing is aimed for the third quarter of 2018.

In the future, Austrak will be part of the Tie Technologies business unit in the Core Components division.

"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," Vossloh AG CEO, Andreas Busemann said.