Wabtec to Acquire Frauscher Sensor Technology Group
The acquisition positions Wabtec for accelerated, profitable growth, and further strengthen the Company’s Digital Intelligence business by adding highly attractive and complementary railway signaling technologies.
Wabtec announced that it has entered into a definitive agreement to acquire Frauscher Sensor Technology Group GmbH (“Frauscher”), a global market leader in train detection, wayside object control solutions and axle counting systems.
“This strategic acquisition enhances Wabtec's current Digital Intelligence portfolio, our opportunities in a high potential market, and aligns with our Company's long-term growth strategy,” said Wabtec President and CEO Rafael Santana. “Frauscher has an industry leading portfolio that offers a rare combination of innovative technology, sustained growth, and strong and resilient profitability.”
Wabtec is acquiring Frauscher for an enterprise value of €675 million 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 (ROIC) 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 €145 million 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.
“Frauscher is a strong addition to the Digital Intelligence business, with a complementary product portfolio that supports our vision of maximizing the safety, efficiency, and capacity of the global rail network,” said Nalin Jain, President of Wabtec’s Digital Intelligence Group. “By combining our businesses, we will be able to deliver safety-critical insights through customized systems combining sensors with software and analytics, along with a comprehensive lifecycle services suite. Given Frauscher’s significant presence in Europe and India, this acquisition will further strengthen our international growth strategy in these large markets.”
This strategic acquisition strengthens Wabtec's Digital Intelligence portfolio and further advances its penetration into the high growth railway signaling market. It also aligns with the Company's long-term vision of driving innovation, productivity, safety and reliability for its customers, while ensuring the integrity of mission critical assets, infrastructure, and supply chains on a global scale.
www.wabteccorp.com
