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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.