Wabtec acquires RELCO locomotive service business

Wabtec Corp. announced yesterday it acquired RELCO Locomotives for $29 million.

RELCO is in the locomotive leasing, rebuilding and repairing business, with operations in Albia and Cedar Rapids, Iowa.

The acquisition will expand Wabtec's freight services capabilities and capacity to support growth in the remanufacturing and repair business, company officials said in a press release.

“The complementary combination of our portfolios will create aftermarket services growth and the development of new, innovative solutions to drive improved asset utilization and reduced operating cost for customers," said Wabtec President and Chief Executive Officer Rafael Santana.

“Our combined companies share a common culture and values rooted in innovation, collaboration, inclusiveness and continuous improvement," added RELCO Chief Operating Officer Mark Bachman. "Together, we will expand our reach, strengthen our market capabilities and better serve the rail industry."

All conditions for the acquisition are completed. RELCO's projected sales for 2019 are $50 million.