US-based Wabtec has signed a $400m definitive agreement to acquire engineered equipment provider Nordco from Greenbriar Equity Group.

Funded through a revolving credit facility and cash on hand, the deal has secured all the required regulatory approvals and is subject to customary closing terms.

Nordco will become part of Wabtec’s freight services group.

This acquisition will enable Wabtec to bolster its installed base and expedite growth across Nordco’s product portfolio.

Wabtec president and CEO Rafael Santana said: “Nordco is a strategic addition to the Wabtec portfolio with an attractive pipeline of vertical solutions and strong aftermarket demand that will only be strengthened by our vast global footprint.

“This acquisition aligns with our growth strategy, is supported by a strong recurring revenue model, technology that complements our business, and is projected to deliver over $10m in cost synergies for our shareholders over the next three years.”

In the past few years, Greenbriar has teamed up with Nordco to invest in new product development, customer relationships and innovation.

Wabtec freight services group president Pascal Schweitzer said: “We are excited to welcome Nordco to Wabtec in an acquisition that accelerates our long-term profitable growth strategy.

“This deal will significantly increase our presence in the maintenance of way segment and give us a strong position in the growing railcar mover market. Our combination provides an attractive offer for customers and opens further opportunities for international expansion.”

For the acquisition, Baird acted as the financial adviser to Nordco.

Legal services to Wabtec were offered by Jones Day while Hughes Hubbard & Reed provided legal services to Nordco.

Earlier this week, Wabtec received an order exceeding $70m to provide numerous components to Siemens Mobility for the London Underground’s Piccadilly upgrade programme.