Wabash National has entered into a definitive agreement to acquire Walker Group Holdings, a leading manufacturer of liquid-transportation systems and engineered products for $360 million (€274 million).
The all cash transaction is anticipated to be immediately accretive to the Company’s net income and is expected to close in the second quarter, subject to regulatory approval. Wabash has received committed financing from Morgan Stanley and Wells Fargo of up to $450 million to fund the purchase price and provide additional financial resources.
Commenting on the transaction, Wabash National’s President and Chief Executive Officer, Richard Giromini said, “Consistent with our diversification strategy, we are very excited to join forces with Walker, a clear leader in a complementary and growing market. The Company has a leading position in nearly every one of its product categories, well-known brands, strong customer relationships that span over decades, and high margin products supported by industry leading innovation and low cost manufacturing.
“We are particularly pleased to be adding a deep and talented team under the leadership of Doug Chapple. Our two companies share a strong cultural fit and we look forward to completion of the transaction to then begin to integrate best practices, leverage individual talents, and accelerate strategic growth initiatives across the combined entity.”
For fiscal year 2011, Walker Group Holdings generated revenue of $344 million (€262 million) and Adjusted EBITDA of $53 million (€40 million).