Wabash Inks Agreement to Acquire Walker Group Holdings
Mar 27, 2012 10:47 AM
Wabash National Corporation (NYSE: WNC) today announced that it has entered into a definitive agreement to acquire Walker Group Holdings LLC, a 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.
"Consistent with our diversification strategy, we are very excited to join forces with Walker, a clear leader in a complementary and growing market,” said Wabash President and Chief Executive Officer Richard Giromini. “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 of $53 million. EBITDA is a non-GAAP financial measure.
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.
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