Wabtec acquiring Nordco
By Jack Burke23 March 2021
US$400 million deal
Wabtec said it was acquiring Nordco, a leading North American supplier of new, rebuilt and used maintenance of way equipment from Greenbriar Equity Group LP.
Nordco’s product and service portfolio includes mobile railcar movers and ultrasonic rail flaw detection technologies. The acquisition has received necessary regulatory approvals and is subject to customary closing conditions.
“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 Rafael Santana, Wabtec president and CEO. “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 US$10 million in cost synergies for our shareholders over the next three years.”
In recent years, Greenbriar partnered with Nordco to invest in innovation, new product development and customer relationships, helping create a leader in rail maintenance of way equipment, products and services.
Nordco, which is based in Oak Creek, Wisconsin, is expected to have full year 2021 sales of more than US$175 million and EBITDA of about US$40 million and will join Wabtec as part of its Freight Services group. Wabtec is acquiring Nordco for US$400 million in cash, financed through cash on hand and a revolving credit facility. Wabtec expects Nordco to be immediately accretive to EBITDA margin, EPS and cash flow in 2021 after adjusting for one-time costs.