Wabtec Completes Frauscher Sensor Technology Group Acquisition

Core Insights - Wabtec Corporation has completed the acquisition of Frauscher Sensor Technology Group for an enterprise value of €675 million, reflecting a multiple of 12.4x projected 2025 EBITDA adjusted for cost synergies [1] - Frauscher is expected to generate approximately €145 million in revenues in 2025 [1] Company Overview - Founded in 1987, Frauscher is a global leader in train detection, wayside object control solutions, and axle counting systems, employing over 700 people across 15 countries [2] - The integration of Frauscher into Wabtec's Digital Intelligence business is anticipated to enhance Wabtec's offerings [2] Strategic Benefits - The acquisition is expected to create immediate shareholder value, with accretive growth, improved adjusted earnings before interest and taxes margins, and enhanced return on invested capital over time [4] - Wabtec's Digital Intelligence portfolio will be broadened, increasing business opportunities in the high-growth railway signaling market [4][8] Executive Statements - Nalin Jain, president of Wabtec's Digital Intelligence Group, emphasized that the combination of Wabtec's digital portfolio with Frauscher's technology will provide innovative solutions for rail operators [3] - Rafael Santana, president and CEO of Wabtec, stated that this strategic acquisition aligns with Wabtec's long-term growth strategy, enhancing value for customers, shareholders, and employees [5]