Wabash National Corporation has entered into a definitive agreement to acquire Walker Group Holdings LLC, a leading manufacturer of liquid-transportation systems and engineered products for $360 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.
Richard Giromini, Wabash National’s president and chief executive officer, 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 and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $53 million.
Morgan Stanley is acting as exclusive financial advisor to Wabash while Hogan Lovells US LLP is serving as legal advisor. Harris Williams & Co is acting as exclusive financial advisor to Walker Group Holdings, while Hunton & Williams LLP is serving as legal advisor.
Headquartered in Lafayette IN, Wabash National specializes in design and production of refrigerated vans, dry freight vans, flatbed trailers, dropdeck trailers, truck bodies, and intermodal equipment. Access www.wabashnational.com for complete information.
New Lisbon WI-based Walker Group Holdings, a portfolio company of private equity firm Insight Equity Holdings LLC, designs and manufactures stainless steel products for the dairy, pharmaceutical, food and beverage, chemical, aviation, personal care, sanitary, energy, and nuclear industries. Visit www.walkerstainless.com for more information.
