Wabtec adds another locomotive facility to its portfolio
U.S. technology company Wabtec Corporation has purchased RELCO Locomotives. The Iowa-based facility is focused on the maintenance and retrofitting of locomotives for railway operators and transit agencies across North America. This acquisition will strengthen the repair business of Wabtec Corporation.
The deal is valued at 29 million US dollars(over 26 million euros) on a cash-free and debt-free basis. All conditions for the acquisition are complete and the transaction will be accretive in one year. RELCO’s projected sales for 2019 are roughly 50 million US dollars (over 50 million euros). RELCO Locomotives is based in Iowa and is focused on the locomotive leasing, rebuilding and repairing industry. The company has over 50 years of experience in maintenance and modernization of locomotives for railway operators, transit agencies and industrial companies throughout North America.
“This acquisition will unlock tremendous value for our customers, employees and shareholders. The complementary combination of our portfolios will create aftermarket services growth and the development of new, innovative solutions to drive improved asset utilization and reduced operating cost for customers,” said Rafael Santana, CEO of Wabtec.
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The purchase of RELCO Locomotives is another deal in a series of merger and acquisitions being carried out by Wabtec in recent years. The company itself was incorporated as a result of merging Wabco and MotivePower in 1999. In 2016 Wabtec integrated with Faiveley Transport. Three years later, a merger deal with GE Transportation was concluded. Thanks to those acquisitions, the company has become a leading global provider of equipment, systems, digital solutions and value-added services for freight and transit rail.
Wabtec’s portfolio includes over 23,000 locomotives running around the world. The company with 27,000 employees has three main headquarters in Pittsburgh, Pennsylvania (corporate office), Chicago, Illinois (freight segment), and Paris, France (transit segment).