AUSTRIA: Wabtec Corp announced on December 1 that it had finalised its previously announced acquisition of Frauscher Sensor Technology Group, which supplies train detection, wayside object control and axle-counting systems.
Wabtec said the acquisition, which was first announced in July, would strengthen its Digital Intelligence business with the addition of ‘highly attractive and complementary’ signalling technologies and a significant presence in key markets in Europe and India.
Wabtec has acquired Frauscher from Delachaux and Frauscher CEO Michael Thiel for an enterprise value of €675m in cash, reflecting an estimated multiple of 12·4 times projected 2025 EBITDA earnings, adjusted for projected run-rate cost synergies which Wabtec expects to be realised over a three-year period.
Based in Austria, Frauscher was founded in 1987 and now has more than 700 employees in 15 countries, as well as installations in more than 100 countries under a wide range of technical, mechanical and environmental conditions. It is expected to generate €145m of revenue in 2025.
’This strategic acquisition is another step in executing Wabtec’s long-term growth strategy, which will provide enhanced value for our customers, shareholders and employees’, said Wabtec President & CEO Rafael Santana. ’The rare combination of our Digital Intelligence portfolio and Frauscher’s industry-leading suite of products opens opportunities in a high-potential market for sustained growth, and strong and resilient profitability.’
