Wabtec to Benefit From Dellner Couplers Buyout: Here's How

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Wed, Mar 19, 2025, 1:00 PM 3 min read

Wabtec Corporation (WAB) is strengthening its operations with strategic acquisitions. To this end, Wabtec has inked a deal to acquire Dellner Couplers for $960 million in cash, financed through its cash on hand and short-term debt. The deal is subject to customary closing conditions and regulatory approvals.

Sweden-based Dellner Couplers is known for its highly engineered safety-critical train connection systems and services for passenger rail rolling stock. With a global base of almost 100,000 couplers and 12,500 gangways, Dellner Couplers offers an extensive range of train connection systems supported by production, assembly, and aftermarket service facilities in 13 countries, serving over 200 customers.

How Will Wabtec Benefit?

The acquisition of Dellner Couplers is anticipated to generate immediate shareholder value, featuring an accretive growth profile, accretive adjusted earnings before interest and taxesmargins, accretive adjusted earnings in the first year of ownership and an accretive return on invested capital over time.

The purchase price marks an estimated multiple of 12.5x projected 2025 earnings before interest, taxes, depreciation and amortizationadjusted for transaction costs and projected run-rate cost synergies of $22 million (which is anticipated to be realized over a three-year period).

Dellner Couplers is anticipated to generate almost $250 million in revenues in 2025.

Considering the consistency and growth in the passenger rail market, the acquisition marks a strategic move for Wabtec to strengthen its portfolio of mission-critical passenger rail systems.

Rafael Santana, president and chief executive officer at Wabtec, stated, “Dellner Couplers provides significant synergies by complementing our core Transit systems portfolio, servicing a joint customer base, and leveraging our strong service capabilities. This acquisition aligns very well with our stated growth strategies to accelerate the innovation of scalable technologies, expand high margin recurring revenues, and to drive improved operational performance.”

WAB’s Zacks Rank & Price Performance

Wabtec currently carries a Zacks Rank #3 (Hold).

WAB shares have gained 27.9% in the past year, outperforming its transportation equipment and leasing industry and the S&P 500, of which the company is a key member.