Wabtec Corporation (NYSE: WAB) has announced a definitive agreement to acquire Dellner Couplers, a global leader in highly engineered, safety-critical train coupling systems and services for passenger rail vehicles. The acquisition strengthens Wabtec's portfolio of mission-critical passenger rail systems by bringing complementary technologies to Wabtec.
“Dellner Couplers provides significant synergies by complementing our core Transit systems portfolio, servicing a joint customer base, and leveraging our strong service capabilities,” said Rafael Santana, President and CEO of Wabtec.
Couplers, funded by cash on hand and short-term debt, for $960 million in cash. The acquisition is expected to be immediately accretive to shareholder value with an accretive growth profile, accretive Adjusted EBIT margins, accretive to Adjusted EPS in the first year of ownership and accretive to return on invested capital (ROIC) over time. The purchase price reflects an estimated multiple of 12.5 times 2025 EBITDA, adjusted for transaction costs, and estimated run-rate cost synergies of $22 million, which we expect to be achieved over three years.
Dellner Couplers is expected to generate revenues of approximately $250 million in 2025 and is expected to grow at a rate in excess of the company's average growth rate over the next five years. The deal is subject to customary closing conditions and regulatory approvals.
