Through this acquisition, Wabtec says it will “expand its installed base and recurring revenue in mining, engine cooling and heat transfer solutions.” It also will “accelerate long-term profitable growth across L&M’s innovative products, both domestically and internationally, while driving value creation for customers and shareholders,” according to the company.
According to Wabtec, L&M MESABI® heavy-duty equipment radiators and heat exchangers will create a “comprehensive thermal management portfolio that extends and augments Wabtec’s capabilities.” The range of solutions offered by L&M products, Wabtec adds, will allow customers to “realize efficiencies in maintenance costs, safety and fleet availability.”
L&M Radiator will join Wabtec as a part of its Components Group. Wabtec, which is acquiring L&M for $230 million in cash, financed through cash on hand and a revolving credit facility, says it expects L&M to be “immediately accretive to EPS excluding transaction costs, further enhanced with strong synergies to be realized over the next three years.”
“We are excited to welcome L&M Radiator to Wabtec,” said Mike Fetsko, President of Wabtec’s Freight & Industrial Components business. “This transaction will further Wabtec’s presence in premium heat transfer solutions and will extend and complement Wabtec’s mining products portfolio. In addition, L&M’s technology further enhances Wabtec’s mission to develop clean energy solutions for operations in mining.”
“This deal is a recognition of L&M’s industry success for more than 65 years and positions our worldwide operations to continue to thrive,” said Dan Chisholm, President of L&M Radiator, Inc. “By joining Wabtec, we can build upon the strengths of our two companies to develop new cooling products for our customers while supporting consistent growth as an industry leader.”
