Private equity firm EQT has agreed a deal to sell Dellner Couplers, a Sweden-based manufacturer of train connection systems, to Wabtec for $960m in cash, according to a report by Reuters citing a company statement on Tuesday.
The deal, which will be financed through cash on hand and short-term debt, is expected to enhance Wabtec’s operational performance and increase high-margin recurring revenue.
Headquartered in Pittsburgh, Pennsylvania, Wabtec supplies equipment, systems, and aftermarket services for the freight and transit rail industries. The company expects the Dellner Couplers acquisition to be immediately accretive to adjusted earnings in the first year of ownership.
EQT acquired Dellner Couplers in 2019, and the company now operates production, assembly, and aftermarket services in 13 countries. The acquisition strengthens Wabtec’s passenger rail business, aligning with its strategy to expand its transit systems portfolio.
