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Wabtec Acquires Maintenance Provider RELCO Locomotives for USD 29m.

M2 EQUITYBITES-January 13, 2020-Wabtec Acquires Maintenance Provider RELCO Locomotives for USD 29m

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13 January 2020 - Pennsylvania-based freight and transit rail equipment and systems provider Wabtec Corp. (NYSE: WAB) has acquired Iowa-based locomotive overhaul and maintenance services provider RELCO Locomotives to expand services capabilities, and capacity to support growth in the remanufacturing and repair business, the company said.

The purchase price for the transaction was USD 29m, on a cash-free and debt-free basis.

All conditions for the acquisition are complete and the transaction will be accretive in year one. RELCO's projected sales for 2019 are roughly USD 50m.

The complementary combination of the portfolios of the two companies will create aftermarket services growth and the development of new, innovative solutions to drive improved asset utilisation and reduced operating cost for customers.

Wabtec Corp. is a provider of equipment, systems, digital solutions and value-added services for freight and transit rail.

RELCO Locomotives, Inc. is in the locomotive leasing, rebuilding, and repairing industry. RELCO provides total solutions to railroads for locomotives, modernisations and work train repairs; transit agencies; OEMs' industrial companies; and government agencies throughout North America.

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Date:Jan 13, 2020
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