Wabtec Corp. reported March 23 it has signed a definitive agreement to acquire Nordco from Greenbriar Equity Group LP.
Nordco, Wabtec said, “is a leading North American supplier of new, rebuilt and used maintenance-of-way equipment with a broad product and service portfolio including mobile railcar movers and ultrasonic rail flaw detection technologies. Through the acquisition, Wabtec Corp. will expand its installed base and accelerate growth across Nordco’s innovative product portfolio both domestically and internationally, while driving increased value creation for customers and shareholders.” The acquisition is said to have received necessary regulatory approvals and is subject to customary closing conditions.
In recent years, Greenbriar partnered with Nordco “to invest in innovation, new product development and customer relationships, helping create a leader in rail maintenance-of-way equipment, products and services,” Wabtec noted.
Wabtec reported that Nordco is expected to have full-year 2021 sales of more than $175 million and EBITDA of about $40 million, and will join the company as part of its Freight Services group. Wabtec is acquiring Nordco for $400 million in cash, financed through cash on hand and a revolving credit facility, according to the company. Wabtec said it expects Nordco to be immediately accretive to EBITDA margin, EPS and cash flow in 2021 after adjusting for one-time costs.
“The Nordco family of companies provides an extensive selection of products and services that enable rail-related industries to build, improve, maintain and inspect their track infrastructure and reposition rolling stock,” Wabtec said. ”Nordco’s equipment and services support North American Class I railroads, short line and transit authorities, equipment leasing companies, and leading industrial customers.”
“Nordco is a strategic addition to the Wabtec portfolio with an attractive pipeline of vertical solutions and strong aftermarket demand that will only be strengthened by our vast global footprint,” Wabtec President and CEO Rafael Santana said. “This acquisition aligns with our growth strategy, is supported by a strong recurring revenue model, technology that complements our business, and is projected to deliver over $10 million in cost synergies for our shareholders over the next three years.”
“We are excited to welcome Nordco to Wabtec in an acquisition that accelerates our long-term profitable growth strategy,” said Pascal Schweitzer, President of Wabtec’s Freight Services group. “This deal will significantly increase our presence in the maintenance-of-way segment and give us a strong position in the growing railcar mover market. Our combination provides an attractive offer for customers and opens further opportunities for international expansion.”