M&A Deal Summary

Wabtec Acquires Workhorse Rail

On December 20, 2016, Wabtec acquired machinery company Workhorse Rail from HKW and Northstar Capital

Acquisition Highlights
  • This is Wabtec’s 11th transaction in the Machinery sector.
  • This is Wabtec’s 15th transaction in the United States.
  • This is Wabtec’s 3rd transaction in Pennsylvania.

M&A Deal Summary
Date 2016-12-20
Target Workhorse Rail
Sector Machinery
Buyer(s) Wabtec
Sellers(s) HKW
Northstar Capital
Deal Type Add-on Acquisition

Target

Workhorse Rail

Pittsburgh, Pennsylvania, United States
Workhorse Rail LLC is a designer and supplier of freight car parts for the North American rail industry.

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Buyer(S) 1

Buyer

Wabtec

Pittsburgh, Pennsylvania, United States
Category Company
Founded 1869
Sector Machinery
Employees29,000
Revenue 9.7B USD (2023)
DESCRIPTION

Wabtec is a provider of value-added, technology-based products and services for the rail industry. Through its subsidiaries, the company manufactures a range of products for locomotives, freight cars, and passenger transit vehicles. Wabtec builds new switcher and commuter locomotives and provides aftermarket services, including locomotive and freight car fleet maintenance. Wabtec was formed in 1869 and is based in Pittsburgh, Pennsylvania.

DEAL STATS #
Overall 31 of 45
Sector (Machinery) 11 of 13
Type (Add-on Acquisition) 27 of 37
State (Pennsylvania) 3 of 4
Country (United States) 15 of 23
Year (2016) 5 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-12-01 Faiveley Transport SA

Saint Denis, France

Faiveley Transport SA is a provider of value-added, integrated systems and services for the railway industry.

Buy $212M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-03-14 Aero Transportation Products

Independence, Missouri, United States

Aero Transportation Products, Inc. is a manufacturer of fiberglass, aluminum, and steel covering systems for covered hopper railroad freight cars. These covered hopper cars are used by rail shippers to transport bulk commodities such as grain, cement, fertilizers, foods, and sand all over the world.

Buy -

Seller(S) 2

SELLER

HKW

Indianapolis, Indiana, United States

Investor Investor Investor Investor

Category Private Equity Firm
Founded 1903
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Hammond Kennedy Whitney & Company (HKW) is a private equity firm focused on making control investments in mid-sized, 'market leading' companies generating sales of $5 to $75 million. HKW looks for companies with low risk for technological obsolescence, defined growth strategies, and talented management who want to own equity. Target transaction situations include industry consolidations, corporate divestitures, generational changes in ownership, growth equity, management buy-outs and recapitalizations. HKW prefers North American based opportunities. HKW dates back to 1903, however the Firm transitioned from sole to institutional investors in 2001. The Firm has offices in Indianapolis and New York City.

DEAL STATS #
Overall 26 of 38
Sector (Machinery) 4 of 4
Type (Add-on Acquisition) 13 of 19
State (Pennsylvania) 1 of 1
Country (United States) 25 of 30
Year (2016) 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-12-01 Xirgo

Camarillo, California, United States

Xirgo is a provider of wireless telematics modules for tracking, monitoring, protecting, and controlling remote assets and workers supporting the Internet of Things (“IoT”) growth sector. Xirgo Technologies was founded in 2005 and is based in Camarillo, California.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-04-03 GMD Distribution

Oakville, Ontario, Canada

GMD is a distributor to the Canadian pharmaceutical industry, specializing in supplying specialty ophthalmic pharmaceuticals to clinics across Canada. GMD develops customized programs for a variety of clients that enable the direct distribution of pharmaceuticals and other healthcare products to Canadian pharmacies and clinics.

Sell -
SELLER

Northstar Capital

Minneapolis, Minnesota, United States

Investor Investor Investor Investor Investor

Category Mezzanine Finance Firm
Founded 1993
PE ASSETS 1.7B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Northstar Capital is a mezzanine finance firm that provides junior capital to middle-market companies operating in the value-added distribution, light manufacturing, business services, financial services, education, and specialty healthcare sectors. Northstar's typical investment size is $5 to $30 million in businesses generating sales of $20 to $300 million with an EBITDA of at least $3 million. Prospective companies have stable cash flows and sustainable margins. Investments typically have maturities of five to eight years. Northstar does not invest in start-ups, real estate development, natural resource exploration, or high technology companies. Northstar Capital was formed in 1993 and is based in Minneapolis, Minnesota.

DEAL STATS #
Overall 38 of 80
Sector (Machinery) 3 of 5
Type (Add-on Acquisition) 12 of 27
State (Pennsylvania) 4 of 6
Country (United States) 37 of 76
Year (2016) 6 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-12-07 Channel Company

Westborough, Massachusetts, United States

Channel Company is an IT channel-focused B2B marketing platform enabling technology companies to target and reach their channel partners. Channel Company was founded in 1982 and is based in Westborough, Massachusetts.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-01-09 Revenue Management Solutions

Oklahoma City, Oklahoma, United States

Revenue Management Solutions is a provider of processes that facilitate the timely matching, posting and reconciliation of health care payments to underlying claims or other correspondence. Revenue Management Solutions was founded in 2006 and is based in Oklahoma City.

Buy -
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