Wabtec to Benefit From Fanox & Kompozitum Buyout: Here's How

Core Viewpoint - Wabtec Corporation is enhancing its operations through strategic acquisitions of Fanox and Kompozitum for a total of $110 million, which will be financed through cash on hand and a revolving credit facility [1] Group 1: Acquisitions and Financial Impact - The acquisitions of Fanox and Kompozitum will be integrated into Wabtec's Transit business, which reported third-quarter 2024 net sales of $733 million, reflecting a year-over-year increase of 9.6% due to strong aftermarket sales [2] - The adjusted operating margin for the Transit segment increased to 12.8% from 12.5% in the third quarter of 2023 [2] - The inclusion of these companies is expected to be immediately accretive to Wabtec's earnings, excluding transaction costs, and will enhance its product portfolio and customer base [4] Group 2: Strategic Benefits - The acquisition of Fanox is anticipated to enhance Wabtec's capabilities in producing relays for on-board train operations and other industrial applications, which is expected to increase the customer base and recurring revenues [4] - The purchase of Kompozitum is likely to strengthen Wabtec's pantograph portfolio and create new opportunities for its carbon and graphite solutions [5] - Pascal Schweitzer, president at Wabtec Transit, emphasized that these acquisitions align with the company's strategy to provide next-generation solutions that improve efficiency, performance, and reliability [3] Group 3: Market Performance - Wabtec currently holds a Zacks Rank 2 (Buy) and has seen its shares gain 57% year-to-date, outperforming both its industry and the S&P 500 [6] - Other top-ranked stocks in the Zacks Transportation sector include C.H. Robinson Worldwide and Expeditors International of Washington, both carrying a Zacks Rank 2 [6]