Wabtec announced it has expanding its freight services capabilities with the acquisition of Relco Locomotives, a provider of locomotive overhaul and maintenance services. The transaction had a value of USD 29 million, on a cash-free and debt-free basis. All conditions for the acquisition are complete.
“This acquisition will unlock tremendous value for our customers, employees and shareholders. 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,” Rafael Santana, Wabtec President, said.
For 50 years Relco has provided modernisation and repair services to transit and government agencies across North America, as well as to OEMs’ industrial companies.
Relco is expecting that its 2019 sales will reach USD 50 million.