AUSTRIA: Wabtec has entered into a definitive agreement to acquire train detection, lineside equipment control and axle counting system supplier Frauscher Sensor Technology Group from Delachaux and Frauscher CEO Michael Thiel, who holds a minority stake.
Wabtec said the deal would strengthen its portfolio and advance its penetration of the ‘high growth’ signalling market.
‘This strategic acquisition enhances Wabtec’s current Digital Intelligence portfolio, our opportunities in a high potential market, and aligns with our company’s long-term growth strategy’, said Wabtec President & CEO Rafael Santana on July 7. ‘Frauscher has an industry leading portfolio that offers a rare combination of innovative technology, sustained growth, and strong and resilient profitability.’
Wabtec is acquiring Frauscher for an enterprise value of €675m in cash. Wabtec said Frauscher is expected to generate approximately €145m of revenue in 2025 and exceed Wabtec’s average growth over the next five years. The transaction is subject to customary closing conditions and regulatory approvals.
Nalin Jain, President of Wabtec’s Digital Intelligence Group, said ‘by combining our businesses, we will be able to deliver safety-critical insights through customised systems combining sensors with software and analytics, along with a comprehensive life-cycle services suite. Given Frauscher’s significant presence in Europe and India, this acquisition will further strengthen our international growth strategy in these large markets.’
Thiel said ’as we embark on this next chapter with our new strategic partner, Wabtec, I am more confident than ever in the future of Frauscher’s team and the innovations we create. This partnership offers us the resources, expertise and global reach to accelerate our growth and further enhance the value we bring to our customers worldwide.’
Delachaux CEO Guy Talbourdet said ’this divestment will give the opportunity to strengthen the family control over Delachaux, guaranteeing the group’s long-term stability and sustainability, and will support the growth of Delachaux’s other businesses: Pandrol, Conductix Wampfler and DCx Chrome.’
