Wabtec Strengthens Portfolio with Strategic Acquisition of Bloom Engineering
In a move to bolster its heat transfer and energy solutions offerings, Wabtec has acquired Bloom Engineering, a leading provider of advanced technologies in burners, combustion systems, and services for industrial and process heating applications. This strategic acquisition integrates Bloom Engineering’s innovative solutions with Wabtec’s existing portfolio, positioning the company for accelerated global growth in this highly profitable segment.
Enhancing Customer Value
The combination of Bloom Engineering’s expertise with Wabtec’s comprehensive range of products and services will provide increased value to customers worldwide. By leveraging their shared vision of driving customer productivity, Wabtec will deliver a more comprehensive portfolio, enabling customers to operate more efficiently and sustainably. Mike Fetsko, President of Wabtec’s Freight & Industrial Components Group, emphasized that Bloom Engineering is a natural fit within their Heat Transfer and Energy Solutions business, as they already serve many of the same customers.
Financial Details
Wabtec acquired Bloom Engineering in the fourth quarter for $69 million in cash, utilizing cash on hand and a revolving credit facility. The acquisition is expected to be immediately accretive to earnings per share, excluding transaction costs, with strong synergies anticipated over the next three years.
Growth Opportunities
As part of Wabtec’s Freight and Industrial Components Group, Bloom Engineering will contribute to the company’s growth strategy, capitalizing on the increasing demand for efficient and sustainable industrial processes. With this acquisition, Wabtec reinforces its commitment to delivering innovative solutions that meet the evolving needs of its global customer base.
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