Wabtec Corporation has announced a definitive agreement to acquire Evident’s Inspection Technologies division, formerly part of the Scientific Solutions Division of Olympus Corporation. This division is renowned for its advanced solutions in Non-Destructive Testing, Remote Visual Inspection, and Analytical Instruments for mission-critical assets. The deal, valued at approximately USD 1.78 billion, aims to expand Wabtec’s Digital Intelligence business and strengthen its presence in high-growth industrial markets.
Inspection Technologies, with its legacy of over 50 years, serves global customers in industries including rail, mining, and industrial sectors. The division operates four engineering and production facilities in North America and Japan, employing more than 1,300 people. The addition of Inspection Technologies to Wabtec’s portfolio will enhance its technological capabilities, particularly in automated inspection, data acquisition, and analytics.
“The acquisition of Inspection Technologies supports our strategy to accelerate the development of scalable technologies, expand our high-margin recurring revenue streams, and improve operational performance,” said Rafael Santana, President and CEO of Wabtec. “Together, we will drive innovation and deliver even greater value to our customers,” he added.
Wabtec’s acquisition will significantly enhance its reach, broadening its total addressable market (TAM) from USD 8 billion to USD 16 billion. With a projected USD 433 million in revenue and an EBITDA of USD 112 million for calendar year 2024, the acquisition is expected to provide substantial long-term growth opportunities. Inspection Technologies brings a highly stable revenue base, with approximately 68% of its income derived from recurring revenue streams.
Nalin Jain, President of Wabtec’s Digital Intelligence Group, highlighted the strategic importance of the deal, noting that Inspection Technologies’ innovative portfolio will complement Wabtec’s offerings, particularly in the rail, mining, and industrial sectors. “This partnership will position us for profitable growth, enhance our customer value, and enable us to lead in innovation,” Jain stated.
Financial impact of Evident’s Inspection Technologies
The USD 1.78 billion purchase price reflects an estimated multiple of 12.0x projected 2025 EBITDA, adjusted for tax benefits, transaction and separation costs, and expected cost synergies. The acquisition is expected to be immediately accretive to Wabtec’s Adjusted Earnings Per Share (EPS) in the first year of ownership and to deliver high single-digit revenue growth, accretive EBIT margins, and a strong return on invested capital (ROIC) over time.
Karen Smith, Executive Vice President of Evident’s Inspection Technologies division, expressed enthusiasm about the acquisition, stating, “The combination of our expertise and complementary portfolios will unlock significant value. Together, we will accelerate the development of intelligent monitoring solutions that meet the evolving needs of our industries.”
The transaction, subject to regulatory approvals, is expected to close by mid-2025.
Share on:
