John Holland buys RCR Tomlinson rail unit through administrators from McGrathNicol
Peter WilliamsThe West Australian
Friday, 21 December 2018 1:34PM
RCR creditors at a Perth meeting this month.Picture: Steve Ferrier/The West Australian
Construction company John Holland has bought the rail business of collapsed engineering group RCR Tomlinson.
The sale of RCR O’Donnell Rail is the first achieved by RCR’s administrators from McGrathNicol since putting its businesses on the market last month.
The transaction amount was not disclosed.
“The sale preserves the jobs of circa 400 Australian employees with RCR O’Donnell Griffin Rail who will transfer to John Holland, and ensures the entitlements of those staff are preserved,” administrator Jason Preston said.
McGrathNicol said the rail business was an attractive target for prospective acquirers and a strategic fit for John Holland, which had a strong profile in that sector.
Administrator Jason Ireland said: “We are pleased to have found a buyer with the capacity to take advantage of its capabilities and expertise.”
McGrathNicol said the administrators were continuing negotiations with a number of parties interested in acquiring parts of its business, with the intention of finalising further sales in the coming weeks.
They are being assisted by advisory firm Record Point.
RCR’s solar energy arm is being wound down. A costs blowout on a Queensland solar project mid-year led to the company’s $630 million demise last month.
The company has about 4,000 unsecured creditors. “
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