Wabtec Corporation has announced the acquisition of Dellner Couplers, a leading provider of train connection systems, for $960 million. This move enhances Wabtec’s portfolio in passenger rail safety solutions, boosting its global presence. The deal is expected to drive growth, innovation, and profitability, pending regulatory approvals and customary closing conditions.
Financial Details & Expected Growth:
Wabtec will finance the acquisition through cash on hand and short-term debt. The deal is projected to be accretive in multiple financial aspects, including Adjusted EBIT margins, Adjusted EPS, and return on invested capital. Dellner Couplers is expected to generate approximately $250 million in revenue by 2025, with growth surpassing Wabtec’s average expansion over the next five years.
Strategic Importance for Wabtec:
- The acquisition aligns with Wabtec’s strategy to expand its transit product and services portfolio.
- It positions the company for long-term growth in the resilient passenger rail market, driven by sustainability trends.
- The deal reinforces Wabtec’s commitment to innovation and efficiency, enhancing its ability to deliver advanced rail solutions globally.
Closing Conditions:
- The transaction is subject to regulatory approvals and customary closing conditions.
- Wabtec anticipates integrating Dellner Couplers smoothly, leveraging synergies valued at $22 million over three years.
Insights:
Mr. Rafael Santana, President and CEO of Wabtec, said “Dellner Couplers provides significant synergies by complementing our core Transit systems portfolio, servicing a joint customer base, and leveraging our strong service capabilities”. This acquisition aligns very well with our stated growth strategies to accelerate the innovation of scalable technologies, expand high margin recurring revenues, and to drive improved operational performance.
Mr. Pascal Schweitzer, President of Wabtec Transit, said “This acquisition will significantly enhance the capabilities of our Transit business, allowing us to provide an attractive offering for customers and opening further opportunities for expansion”. The strength of Dellner Couplers’ portfolio of products and services, along with the management team’s track record of delivering industry-leading financial results will accelerate our long-term profitable growth strategy.
About Dellner Couplers:
Sweden-based Dellner Couplers, with an 84-year history of innovation, specializes in manufacturing and servicing couplers for the transit rail sector. The company has a global footprint, supplying over 100,000 couplers and 12,500 gangways worldwide. It operates in 13 countries and serves more than 200 customers, making it a key player in train connection systems.
Conclusion:
Wabtec’s acquisition of Dellner Couplers marks a strategic step in reinforcing its leadership in passenger rail solutions. By adding Dellner’s expertise in train connection systems, Wabtec is set to enhance operational efficiencies, drive innovation, and capitalize on the growing global demand for reliable and safe transit rail technologies.
Source: Wabtec – Press Release | Image Credit: Wabtec
