Wabtec to acquire Frauscher for enterprise value of EUR 675M in cash

Wabtec (WAB) has entered into a definitive agreement to acquire Frauscher Sensor Technology, a global market leader in train detection, wayside object control solutions and axle counting systems. The acquisition positions Wabtec for accelerated, profitable growth, and further strengthens the Company’s Digital Intelligence business by adding highly attractive and complementary railway signaling technologies. Wabtec is acquiring Frauscher for an enterprise value of EUR 675M in cash. The acquisition is anticipated to provide immediate shareholder value with an accretive growth profile, accretive Adjusted EBIT margins, accretive Adjusted EPS in the first year of ownership, and accretive return on invested capital over time. The purchase price reflects an estimated multiple of 12.4x projected 2025 EBITDA adjusted for projected run-rate cost synergies which Wabtec expects to be realized over a three-year period. Frauscher is expected to generate approximately EUR 145M of revenue in 2025 and expected growth will exceed Wabtec’s average growth over the next five years. The transaction is subject to customary closing conditions and regulatory approvals.