Finland's Hiab to buy Canadian garbage truck maker Labrie for $1 billion
Hiab's Acquisition of Labrie: Key Details and Strategic Impact
Overview of the Acquisition
June 1 (Reuters) - On-road load-handling equipment maker Hiab has agreed to buy North American garbage truck manufacturer Labrie Environmental Group for about $1 billion, the Finnish company said on Monday.
The acquisition, which is expected to strengthen cash generation immediately after the deal is closed, drove the company's shares 7% higher in early trading, among top performers on Europe's benchmark STOXX 600 index.
Transaction Details
- The transaction is valued at $1.035 billion on a cash and debt-free basis
- The sellers are Wynnchurch Capital L.P. and management minority shareholders of Labrie
- The deal is expected to close in the third quarter of 2026, subject to regulatory approvals and customary closing conditions
- Hiab has entered into a committed financing arrangement with Danske Bank and OP Corporate Bank to secure financing for the deal
About Labrie Environmental Group
- Labrie is a Canada-based maker of refuse collection vehicles that operates four manufacturing sites across Canada, the U.S. and Mexico for Labrie, Wittke and Leach brands
- For the 12 months through March, it generated sales of $491 million and comparable EBITDA of $113 million, representing 23% of sales
Strategic Rationale and Analyst Commentary
Hiab's North American Growth Strategy
- Growing its North American business is an essential part of Hiab's strategy
Financial and Strategic Benefits
- The deal is attractively valued and would bring higher profitability than Hiab's legacy operations, Handelsbanken analyst Timo Heinonen said
- Analyst Jussi Mikkonen from OP Financial Group said the acquisition would improve Hiab’s growth potential and margins while offering longer-term synergies
Reporting and Editorial Credits
(Reporting by Izabela Niemiec in Gdansk, editing by Milla Nissi-Prussak)
