WABTEC has announced a definitive agreement to acquire Dellner Couplers. The deal for the Swedish supplier of couplers, gangways and dampers is worth $US 960m in cash.
Dellner Couplers has been active in the railway sector for 84 years, becoming an industry leader in the manufacture and servicing of couplers for passenger rolling stock and connecting systems.
The company has an installed base of approximately 100,000 couplers and 12,500 gangways, and has production, assembly and aftermarket service facilities through 17 subsidiaries located in 13 countries, serving over 200 customers. Dellner Couplers employs 1200 people worldwide.
Wabtec says the acquisition will “provide significant synergies” by complementing its core transit systems portfolio.
“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,” says Rafael Santana, president and CEO of Wabtec.
Wabtec says the acquisition is financed through cash in hand and short-term debt. It adds that the acquisition is anticipated to provide immediate shareholder value.
Dellner Couplers is expected to generate revenue of $US 250m in 2025 and growth is expected to exceed its current average over the next five years, Wabtec reports. The deal is subject to customary closing conditions and regulatory approval.
The acquisition will further strengthen Wabtec’s standing in the coupler market having completed in 2016 the acquisition of Faiveley, another European manufacturer of rolling stock coupling systems and other products. Dellner and Wabtec are two of the four suppliers of the Digital Automatic Coupler (DAC) alongside Voith and Knorr-Bremse.
