Hiab (HIAB) M&A announcement summary

Deal rationale and strategic fit

• Acquisition of a leading North American refuse collection vehicle manufacturer accelerates profitable growth, expands presence in waste and recycling, and diversifies sales exposure, reducing cyclicality.

• Adds a differentiated, premium product vertical with strong brand recognition and technological fit, supporting ambitions to grow in North America and increase service sales.

• Enhances North American manufacturing and sales channels, supporting aftermarket business growth and digitalization.

• All growth over the past decade has been organic, with no acquisitions.

Financial terms and conditions

• All-cash transaction valued at $1.035 billion (approx. EUR 890 million), representing a 9.2x LTM EBITDA multiple (LTM EBITDA: $113 million).

• 100% cash consideration, financed with cash at hand and up to EUR 900 million in new debt; committed financing secured.

• Pro forma gearing expected at 70% post-deal, with a target to return below 50% as cash generation continues.

• Order backlog of $435 million, stable order book corresponding to about one year of sales.

• Labrie generated USD 491 million in sales and USD 113 million EBITDA (23% margin) for the LTM ending March 2026.

Synergies and expected cost savings

• Clear opportunities for both sales and procurement synergies, with initial estimates of low double-digit USD millions per year at EBITDA level.

• Synergies expected from material procurement, sales channel overlap, and enhanced service penetration.

• Integration of digital services and aftermarket offerings to drive recurring revenue.