Wabtec Corporation (WAB) has entered into a definitive agreement to acquire Frauscher Sensor Technology Group GmbH for an enterprise value of €675 million in cash. The acquisition positions Wabtec for accelerated, profitable growth. It strengthens the company’s Digital Intelligence business by adding complementary railway signaling technologies.
The deal is expected to deliver immediate shareholder value with an accretive growth profile. It will provide accretive Adjusted EBIT margins and accretive Adjusted EPS in the first year of ownership.
Over time, the acquisition will generate an accretive return on invested capital (ROIC). This strategic move strengthens Wabtec’s Digital Intelligence portfolio and advances its penetration into the high-growth railway signaling market.
“This strategic acquisition enhances Wabtec Holdings Inc.’s current Digital Intelligence portfolio, expands our opportunities in a high potential market, and aligns with our company’s long-term growth strategy,” said Wabtec President and CEO Rafael Santana.
