Wabtec acquires heavy-duty equipment manufacturer L&M Radiator for $230m

Wabtec Corporation has expanded its thermal management portfolio through the acquisition of L&M Radiator, a Minnesota-based manufacturer of heavy-duty equipment radiators and heat exchangers for $230 million.

Founded in 1957 and headquartered in Hibbing, L&M Radiator maintains a strong international presence with employees and operations across the United States, Australia, Mexico, and Chile.

Dan Chisholm — L&M Radiator President said: “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.

“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.”

Wabtec acquires Minnesota-based heavy-duty equipment manufacturer L&M Radiator. Photo courtesy of Wabtec Corporation.

The acquisition will extend Wabtec’s existing capabilities, offering comprehensive thermal management solutions and driving value for its customers and shareholders. L&M Radiator’s products, known for their innovation, will boost Wabtec’s recurring revenue in mining, engine cooling, and heat transfer solutions and are expected to accelerate long-term profitable growth both domestically and internationally.

The integration of L&M Radiator will augment Wabtec’s installed base, facilitating customers in reducing maintenance costs, improving safety, and enhancing fleet availability. As a part of the deal, L&M Radiator will join Wabtec’s Components Group, expanding the conglomerate’s thermal management portfolio with L&M MESABI’s heavy-duty equipment radiators and heat exchangers.

Mike Fetsko — Wabtec President of Freight & Industrial Components business said: “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.”

The deal is funded by Wabtec through cash on hand and a revolving credit facility, and is expected to be immediately accretive to EPS excluding transaction costs, with further strong synergies projected over the next three years.