EQT Completes Strategic Asset Sale of Dellner Couplers to Wabtec Corporation
EQT Completes Sale of Dellner Couplers to Wabtec Corporation
In a strategic move within the rail industry, EQT announced a definitive agreement to sell Dellner Couplers to Wabtec Corporation, a publicly listed entity on the New York Stock Exchange under the symbol WAB. This transaction values Dellner at an impressive EUR 890 million, underscoring its esteemed position in the market.
Originally founded in 1941 in Vika, Sweden, Dellner Couplers has emerged as a leading provider of train connection systems globally. The company specializes in safety-critical components, offering essential services to rail manufacturers and operators across Europe, North America, and Asia. With an advanced portfolio that includes couplers, gangways, dampers, and aftermarket services, Dellner has become synonymous with reliable and efficient rail transport solutions.
EQT took ownership of Dellner in 2019 and has played an instrumental role in the company's evolution, prioritizing a robust commercial structure and an enriched product offering. The acquisition of the coupling business from CAF MiiRA and targeted investments in research and development have significantly enhanced Dellner's competitive edge. Additionally, the company has made strides toward sustainability by implementing higher environmental standards throughout its operations and supply chain.
Under the guidance of an experienced industrial board led by Chairman Klaus Deller, Dellner has solidified its market standing and prepared for future growth. Nils Ketter, a Partner in EQT's Private Equity advisory team, stated, “Dellner plays a crucial role in the train connection market. The company's innovative spirit drives the rail transportation sector forward, aligning with our collective transition toward greener mobility.” This sentiment reflects the industry's shift towards prioritizing sustainable practices and solutions.
Fredric Håkansson, the CEO of Dellner, expressed gratitude for EQT's backing during a pivotal transformation period, recognizing the importance of stay disciplined in their mission to advance product innovation and sustainability. Håkansson remarked, “This transition represents the hard work and commitment of our entire team. Joining Wabtec provides us with a strong platform to expand our innovations and continue delivering exceptional value to our customers.”
The agreement is contingent upon standard conditions and regulatory approvals, signaling a new chapter for Dellner Couplers as they prepare to integrate into Wabtec's operations. As part of Wabtec, Dellner aims to further enhance its product offerings and pursue best-in-class solutions in the rail industry.
In conclusion, the sale of Dellner Couplers is not just a financial transaction but a strategic alliance that emphasizes the growing importance of safe, sustainable rail transport solutions. With Wabtec's robust platform and Dellner's proven expertise, the future looks promising for continued innovation and excellence in rail connections.
EQT has been advised in this transaction by J.P. Morgan Securities Plc, Milbank, Vinge, and EY, ensuring a comprehensive approach to the sale process. As the trains continue to roll on the tracks worldwide, the evolution of companies like Dellner remains pivotal to advancing the sector for the betterment of society and the environment.