Wabtec Corporation announced it has acquired L&M Radiator, Inc., a manufacturer of heavy-duty equipment radiators and heat exchangers.
“We are excited to welcome L&M Radiator to Wabtec,” says 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.”
Through this acquisition, Wabtec 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. 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 will allow customers to realize efficiencies in maintenance costs, safety, and fleet availability.
“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,” says 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.”
L&M Radiator will join Wabtec as a part of its Components Group. Wabtec is acquiring L&M for $230 million in cash, financed through cash on hand and a revolving credit facility. Wabtec 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.
