Wabtec Acquires Frauscher For Smarter Rails, Wider Global Footprint

Zinger Key Points

Wabtec will acquire Frauscher in a 675M euros deal to expand digital rail infrastructure and global reach.
The transaction is expected to boost adjusted EPS and margins, with 145M euros in projected 2025 revenue.
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Westinghouse Air Brake Technologies Corporation, commonly known as Wabtec Corporation WAB, announced Monday it will acquire Frauscher Sensor Technology Group GmbH in a 675 million euros (~$729 million) all-cash deal to expand its digital rail infrastructure capabilities and strengthen its international presence.

The transaction will add Frauscher’s train detection and axle-counting systems to Wabtec’s Digital Intelligence portfolio. The acquisition is expected to close after standard regulatory approvals.

Wabtec anticipates that the acquisition will deliver immediate financial benefits, including improvements in adjusted EPS, margins, and capital returns. Frauscher is projected to generate approximately 145 million euros in revenue in 2025, with growth outpacing Wabtec’s overall expectations for the next five years.

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Rafael Santana, CEO of Wabtec, said the acquisition adds profitable, high-growth technology to the company’s portfolio. He cited Frauscher’s strong performance and product alignment as key to accelerating innovation and delivering shareholder value. Wabtec expects to unlock cost synergies over a three-year period, resulting in a projected 12.4x 2025 EBITDA multiple.

Nalin Jain, President of Wabtec’s Digital Intelligence Group, said the deal strengthens Wabtec’s global reach, particularly in Europe and India. He emphasized the opportunity to combine Frauscher’s hardware with Wabtec’s analytics and lifecycle services to enhance safety and operational efficiency across rail networks.

This acquisition aligns with Wabtec’s mission to modernize global rail infrastructure through technology, enabling improved asset reliability and sustainable transportation systems.

As of March 31, 2025, WAB held $698 million in cash, cash equivalents, and restricted cash.

Related ETFs: iShares U.S. Transportation ETF IYT, First Trust Nasdaq Transportation ETF FTXR

Price Action: WAB shares closed at $214.37, up 0.23% on Thursday.

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