USA: Wabtec Corp has signed a definitive agreement to acquire North American track maintenance and inspection equipment and wagon mover supplier Nordco.
The business will be acquired from Greenbriar Equity Group for $400m in cash, to be financed through cash on hand and a revolving credit facility.
‘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’, said Wabtec President & CEO Rafael Santana on March 23.
‘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 $10m in cost synergies for our shareholders over the next three years.’
Nordco is expected to have full year 2021 sales of more than $175m and EBITDA of about $40m, and Wabtec expects it to be immediately accretive after adjusting for one-time costs.
Baird acted as financial advisor to Nordco, Jones Day provided legal services to Wabtec and Hughes Hubbard & Reed provided legal services to Nordco.
