Finland's Hiab to buy Canadian garbage truck maker Labrie for $1 billion (updated)
UPDATE 1-Finland's Hiab to buy Canadian garbage truck maker Labrie for $1 billion Adds share move and STOXX position in paragraph 2, analysts' comments in bullets 8-9
June 1 (Reuters) - On-road load-handling equipment maker Hiab HIAB.HE 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 .STOXX.
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
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
Growing its North American business is an essential part of Hiab's strategy
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 by Izabela Niemiec in Gdansk, editing by Milla Nissi-Prussak)
((izabela.niemiec@thomsonreuters.com))