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.
Despite the short-term dip, the deal represents an attractive valuation multiple of 2.75x EV/EBITDA, assuming maximum earn-out targets are met.
To ensure operational continuity, Railtrain’s existing CEO and Key Management Personnel will remain at the helm, and all current staff—numbering approximately 300 across six national depots—have been offered continued employment.
Genus Managing Director David Riches emphasised that the acquisition is a "logical" next step in the company’s expansion strategy, enhancing their ability to service major rail operators and infrastructure owners nationwide.