Wabtec Corporation has acquired RELCO Locomotives for $29 million, on a cash-free and debt-free basis. RELCO is a locomotive leasing, rebuilding, and repairing industry with operations in Albia and Cedar Rapids, Iowa.
The acquisition will expand Wabtec’s freight services capabilities and support growth in the remanufacturing and repair business. RELCO’s projected sales for 2019 are approximately $50 million.
“This acquisition will unlock tremendous value for our customers, employees and shareholders,” said Wabtec President and CEO Rafael Santana. “The complementary combination of our portfolios will create aftermarket services growth and the development of new, innovative solutions to drive improved asset utilization and reduced operating cost for customers.”
“The combination of our teams is an excellent fit,” remarked Mark Bachman, RELCO chief operating officer. “Our combined companies share a common culture and values rooted in innovation, collaboration, inclusiveness and continuous improvement. Together, we will expand our reach, strengthen our market capabilities and better serve the rail industry.”
“Today marks an exciting day for Wabtec’s services business and will further strengthen our portfolio," said Pascal Schweitzer, Wabtec group president freight global services organization. "By leveraging Wabtec’s robust remote monitoring and diagnostics and predictive maintenance capabilities, as well as our focus on lean continuous improvement, we will build upon RELCO’s deep product offering, track record of service quality and engineering creativity for locomotive modernizations. We are excited about the long-term opportunities before us and are pleased to welcome Mark Bachman and the RELCO team to the Wabtec family.”