Monday, August 06, 2012

Wabtec completes Brazilian acquisition

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Wabtec Corp. said Monday it had completed its acquisition of Winco Equipamentos Ferroviarios Ltda., to expand its presence in Brazil. Wabtec expects the transaction to be accretive in the first year.

Based in Sao Paolo, with annual sales of about $15 million, Winco is an established marketing and sales company with capabilities including value-added engineering and assembly, service, technical support, and logistics, Wabtec said. The company has an extensive network of customer relationships in the freight rail and passenger transit markets throughout Brazil.

"Winco complements our existing presence in Brazil and provides a framework for further growth in this important market," said , Wabtec President and CEO Albert J. Neupaver. "Combined with our recent acquisition of Mors Smitt, a European-based manufacturer of electronic components for rail and industrial markets, this further demonstrates our ongoing commitment to expand Wabtec's global presence."

From 2006-2011, Wabtec's sales outside of the U.S. grew from $370 million to $916 million, for a compounded annual growth rate of 20%. As the largest freight rail market in South America and the sixth-largest in the world, Brazil has contributed to that growth, Wabtec said, with Wabtec sales in that nation increasing from less than $5 million in 2009 to more than $70 million in 2011. Wabtec anticipates double-digit growth this year.