In a major development for Western Australia's resources sector, privately-owned rail builder Pilbara Rail Maintenance is set to be acquired by Italian group Salcef in a deal worth up to $180 million.
From Humble Beginnings to Major Deal
The husband-and-wife team of Chris Prior and Chelsea Herman, who founded the business specialising in laying and maintaining Pilbara's extensive iron ore haulage railways, have built their company into a significant industry player. Operating from their Karratha base, PRM employs 300 people and has secured contracts with mining giants BHP and Rio Tinto.
Mr Prior, a former track labourer himself, identified the potential for more mechanised approaches to rail maintenance and construction when he established PRM with backing from investor Ian Abbott in 2018. Since then, the company has ridden the wave of new mine developments across Western Australia.
Growth and Expansion Plans
Despite the substantial acquisition, valued at up to $180 million over five years, the founders have no plans to exit the business they've built. Chris Prior and Chelsea Herman believe there remains significant growth potential for their operation within the WA industry.
"We still consider ourselves a small, family-owned business," Mr Prior told The West Australian. The couple, now based in Coffs Harbour NSW after 15 years in Western Australia, emphasised their commitment to maintaining the company's culture and workforce.
Strategic Benefits and Industry Impact
The acquisition by Salcef, which recorded €1 billion in revenue during 2024, promises to bring substantial benefits to PRM's operations. Access to Salcef's Italian factories that manufacture railway track and tunnel components is expected to drive new growth opportunities.
Salcef chief Valeriano Salciccia praised PRM as "a first-class operator with an unrivalled safety record" and acknowledged their role as "first movers in rail safety and innovation." He highlighted that the Australian company had developed "genuine enhancements to the way the iron ore industry manages heavy haul rail infrastructure."
The deal, which requires approval from the Foreign Investment Review Board in the coming weeks, will see PRM absorbed into the larger Salcef organisation. Advisers on the transaction included Hamilton Locke, Infrastructure Asset Group and JLC Associates.
This acquisition continues a trend of successful sales among Western Australia's private, locally-run enterprises, following similar deals such as Contract Resources' $377 million sale to Cleanaway Waste Management earlier this year.
