Pittsburgh-headquartered rail know-how supplier Wabtec (NYSE: WAB) is buying Nordco, which provides new, rebuilt and used maintenance-of-way gear. Nordco, which had belonged to mum or dad firm Greenbriar Equity Group, additionally presents cellular railcar movers and ultrasonic rail flaw detection applied sciences.
The acquisition, value $400 million in money, has been finalized and obtained regulatory approvals, and the deal ought to shut within the coming weeks, in line with Pascal Schweitzer, vp of companies for Wabtec. Schweitzer can be president of Wabtec’s Freight Providers group, which Nordco will combine into following the acquisition.
Wabtec’s acquisition of Nordco comes at a time when freight site visitors is growing and there’s a concentrate on bettering velocity and making certain security, Schweitzer advised FreightWaves. This focus makes maintenance-of-way actions more and more vital, and Wabtec has recognized maintenance-of-way know-how as an organization precedence and a approach to place Wabtec into the rising railcar mover market, he stated.
“We complement one another very effectively and we put quite a lot of concentrate on development, each domestically and internationally,” Schweitzer stated.
The acquisition will present Nordco’s choices worldwide publicity as Wabtec markets not solely in North America but in addition in areas corresponding to Brazil, Australia, Russia, the Commonwealth of Impartial States and India, Schweitzer stated.
Wabtec will mix the engineering experience of each firms, he stated.
Nordco supplies an intensive number of services that allow rail-related industries to construct, enhance, preserve and examine their monitor infrastructure and reposition rolling inventory, Wabtec famous. Nordco’s gear and companies assist the North American Class I railroads, short-line and transit authorities, gear leasing firms, and main industrial prospects, in line with an organization launch on the acquisition.
Schweitzer stated that is the third-largest acquisition for Wabtec. Nordco is predicted to have full-year 2021 gross sales of greater than $175 million and earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA) of about $40 million.
“Nordco is a strategic addition to the Wabtec portfolio with a lovely pipeline of vertical options and powerful aftermarket demand that can solely be strengthened by our huge international footprint,” Wabtec CEO Rafael Santana stated in a launch. “This acquisition aligns with our development technique, is supported by a robust recurring income mannequin, know-how that enhances our enterprise, and is projected to ship over $10 million in price synergies for our shareholders over the following three years.”
Baird served as monetary adviser to Nordco. Jones Day offered authorized companies to Wabtec, whereas Hughes Hubbard & Reed offered authorized companies to Nordco, in line with Wabtec.
Nordco has workplaces and operations in Oak Creek, Wisconsin; Arcola, Illinois; Kansas Metropolis, Missouri; and Beacon Falls, Connecticut.