Oak Creek-based railroad equipment maker
Nordco will be acquired by Wabtec Corp. in a $400 million deal, Pittsburgh-based Wabtec announced this week.
Wabtec, short for Westinghouse Air Brake Technologies, is one of the largest providers of locomotives and equipment, systems and services for the global freight rail and passenger transit industries. It acquired GE Transportation in 2019 and had $7.5 billion in revenue last year.
Nordco’s products include railroad maintenance equipment, railcar movers and ultrasonic rail flaw detection technologies. In announcing the deal, Wabtec highlighted the opportunity to expand its installed base, accelerate growth domestically and internationally while also creating value for customers and shareholders.
“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, president and chief executive officer of Wabtec.
Santana said the deal is supported by “a strong recurring revenue model” and the potential for $10 million in cost synergies over the next three years.
The deal is still subject to regulatory approvals and closing conditions.
If the deal closes, it will be the fourth time Nordco has been acquired in the last 20 years. In 2003, the company was
bought by The Riverside Co., which sold it to OMERS Private Equity in 2009. It was then
sold in 2013 to New York-based private equity firm Greenbriar Equity Group.
Under Greenbriar, the company invested in innovation and new product development and customer relationships. Nordco is expected to have more than $175 million in sales this year and EBITDA of $40 million.
The company will be part of Wabtec’s freight services group.
