Wabtec Corporation to acquire Dellner Couplers for $960Mn

Pittsburgh, United States (Metro Rail Today): Wabtec Corporation has entered into a definitive agreement to acquire Dellner Couplers, a global leader in engineered safety-critical train connection systems and services for passenger rail rolling stock. This acquisition, valued at $960 million in cash, is expected to drive accelerated, profitable growth for Wabtec while enhancing its portfolio of mission-critical systems for the passenger rail sector.

Dellner Couplers, headquartered in Sweden, brings over 84 years of innovation in train connection systems. With a global installed base of around 100,000 couplers and 12,500 gangways, Dellner serves more than 200 customers in 13 countries through its production, assembly, and aftermarket service facilities. The company is a key player in manufacturing and servicing couplers for the transit rail industry, strengthening Wabtec’s position in the growing passenger rail market.

“Dellner Couplers offers valuable synergies by complementing our core Transit systems portfolio and enhancing our service capabilities for a joint customer base,” said Rafael Santana, President and CEO of Wabtec. “This acquisition aligns perfectly with our growth strategies, which include accelerating the innovation of scalable technologies, expanding high-margin recurring revenues, and improving operational performance."

Strategic Synergies and Growth Opportunities

The acquisition of Dellner Couplers will significantly boost Wabtec’s capabilities in the Transit business, providing an attractive offering for customers and opening new opportunities for expansion. Pascal Schweitzer, President of Wabtec Transit, stated, “The strength of Dellner Couplers' product portfolio, coupled with their proven track record of delivering industry-leading financial results, will accelerate our long-term growth strategy."

Dellner Couplers is projected to generate approximately $250 million in revenue by 2025, with growth expected to outpace Wabtec’s average growth rate over the next five years. The acquisition is also expected to provide immediate shareholder value, including accretive growth, improved EBIT margins, adjusted EPS in the first year, and enhanced return on invested capital (ROIC) over time.

The $960 million acquisition will be financed through a combination of cash on hand and short-term debt. The purchase price represents an estimated multiple of 12.5x projected 2025 EBITDA, adjusted for transaction costs and expected cost synergies of $22 million, which are anticipated to be realized within three years.

Strengthening Wabtec’s Leadership in Passenger Rail

The addition of Dellner Couplers further solidifies Wabtec’s leadership position in the passenger rail market, which is driven by long-term, sustainable megatrends. This strategic acquisition aligns with Wabtec’s long-term vision to innovate and drive productivity, safety, and reliability in the global passenger rail sector.

The acquisition is subject to customary closing conditions and regulatory approvals. Once completed, it will enhance Wabtec’s ability to meet the evolving needs of the passenger rail market, positioning the company for continued growth and success in the coming years.