GenusPlus Group (ASX:GNP) has entered into a binding agreement to acquire 100% of Railtrain, a move designed to bolster its presence in the national rail infrastructure sector.
The deal involves an upfront cash payment of $36.5 million, with further contingent considerations of up to $18.5 million linked to EBITDA performance targets through 2027.
The acquisition is strategically timed to integrate Railtrain's specialised capabilities—including overhead wiring, signalling, and rail personnel training—into Genus' existing MGC rail business, providing immediate scale and geographic diversification across Western Australia, Queensland, and New South Wales.
The acquisition is expected to be immediately earnings accretive.
While Railtrain reported a pro-forma normalised revenue of approximately $96 million and an EBITDA of $16 million for FY25, the company has flagged a softer outlook for FY26 due to anticipated project delays.