WASHINGTON (dpa-AFX) - Wabtec Corp. (WAB), Tuesday announced that the company has entered into an agreement to acquire Dellner Couplers, a supplier of train connection systems, for $960 million in cash.
The company stated that acquisition aligns with their stated growth strategies to accelerate the innovation of scalable technologies, expand high margin recurring revenues, and to drive improved operational performance.
The deal will be financed through cash on hand and short-term debt.
The transaction is estimated 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 over time.
Moreover, Dellner Couplers is anticipated to generate approximately $250 million of revenue in 2025 as well as expected growth, which will exceed the company's average growth in the next five years.
In the pre-market hours, Wabtec's stock is trading at $182, up 0.07 percent on the New York Stock Exchange.
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