Wabtec agreed to buy Dellner Couplers, a global leader in highly engineered safety-critical train connection systems and services for passenger rail rolling stock. The acquisition brings attractive and complementary technologies to Wabtec and positions the company for accelerated, profitable growth while strengthening its passenger rail systems portfolio.
Sweden-based Dellner Couplers has an 84-year legacy of innovation in train connection systems, positioning the company as an industry leader in the manufacturing and servicing of couplers for the transit rail industry. It has a global installed base of approximately 100,000 couplers and 12,500 gangways. Dellner Couplers offers an extensive offering in train connection systems, with production, assembly, and aftermarket services facilities in 13 countries serving over 200 customers.
Wabtec is buying Dellner Couplers for $960 million in cash, financed through cash on hand and short-term debt. The acquisition is anticipated to provide immediate shareholder value with an accretive growth profile, accretive Adjusted EBIT margins, accretive Adjusted EPS in the first year of ownership, and accretive return on invested capital (ROIC) over time.
This purchase price reflects an estimated multiple of 12.5x projected 2025 EBITDA adjusted for transaction costs and projected run-rate cost synergies of $22 million, which is expected to be realized over three years. And Dellner Couplers is expected to generate approximately $250 million of revenue in 2025 and expected growth that will exceed the Company’s average growth over the next five years. The transaction is subject to customary closing conditions and regulatory approvals.
This strategic deal strengthens Wabtec’s Transit product and services portfolio, which serves a stable and growing underlying passenger rail market driven by sustainable megatrends. It builds on the Company’s leadership position in this large, expanding, and resilient addressable market. Adding Dellner Couplers aligns with the company’s long-term vision of driving innovation, productivity, safety, and reliability for passenger rail on a global scale.
KEY QUOTES:
“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.”
– Rafael Santana, President and CEO of Wabtec
“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.”
– Pascal Schweitzer, President of Wabtec Transit
