Wabtec Acquires Bloom Engineering to Boost Energy Solutions
Wabtec Corporation announced its acquisition of Bloom Engineering, Inc., a leading provider of industrial heating solutions. This strategic move is set to enhance Wabtec’s capabilities in heat transfer and energy solutions, bringing advanced technology and expertise to its portfolio. The acquisition underscores Wabtec’s commitment to delivering innovative, efficient, and sustainable solutions to its global customer base.
Bloom Engineering is renowned for its state-of-the-art burners, combustion systems, and comprehensive services tailored to industrial and process heating applications. By integrating Bloom’s expertise with its existing product and service offerings, Wabtec aims to drive significant growth in a highly profitable market segment. This collaboration is expected to create added value for customers, enabling them to optimize their industrial processes and improve overall operational efficiency.
“This is another exciting addition to Wabtec,” stated Mike Fetsko, President of Wabtec’s Freight & Industrial Components Group. “Bloom Engineering is a great fit within our Heat Transfer and Energy Solutions business, and we already serve many of the same customers. Our shared vision toward driving customer productivity within their industrial processes will enable us to deliver a more comprehensive portfolio for our customers to operate more efficiently and sustainably.”
Bloom Engineering’s extensive design and engineering capabilities align seamlessly with Wabtec’s mission of innovation and excellence. For decades, the world’s leading metal producers have relied on Bloom’s cutting-edge solutions to boost plant efficiencies, unlock production potential, and significantly reduce emissions of CO2 and NOX. This focus on sustainability resonates strongly with Wabtec’s commitment to decarbonization and environmentally responsible practices.
The acquisition transaction, completed in the fourth quarter of 2024, was valued at $69 million. It was financed through a combination of cash on hand and a revolving credit facility. Wabtec anticipates that the acquisition will be immediately accretive to earnings per share (EPS) excluding transaction costs. Furthermore, the company expects to realize substantial synergies over the next three years, which will enhance the financial and operational benefits of this deal.
Bloom Engineering will become part of Wabtec’s Freight and Industrial Components Group. This integration is expected to foster collaboration and innovation across the organization, amplifying Wabtec’s ability to address the diverse needs of its industrial customers. The partnership also positions Wabtec to further penetrate global markets, leveraging Bloom’s established reputation and expertise to drive growth.
Wabtec’s acquisition of Bloom Engineering aligns with its broader strategy of advancing technological innovation and sustainability across its operations. By incorporating Bloom’s advanced combustion technologies, Wabtec is poised to offer an enhanced range of solutions that address critical challenges in industrial heating and energy efficiency. This includes reducing greenhouse gas emissions and improving productivity in various industries, from metal production to other energy-intensive sectors.
The acquisition highlights Wabtec’s proactive approach to identifying and integrating complementary businesses that align with its vision and objectives. With over 150 years of industry leadership, Wabtec has consistently demonstrated its ability to evolve and adapt, ensuring its solutions remain at the forefront of technological advancements and market demands.
Wabtec Corporation (NYSE: WAB) is a global leader in equipment, systems, digital solutions, and value-added services for the freight and transit rail industries, as well as mining, marine, and industrial markets. With a legacy spanning over a century and a half, Wabtec is committed to revolutionizing the way the world moves for future generations. The company is a pioneer in the decarbonization of freight rail and continues to lead the way in sustainable transportation solutions. For more information, visit Wabtec’s website.
Bloom Engineering, Inc. is a premier provider of industrial heating applications, specializing in burners, combustion systems, and engineering services. The company has earned a strong reputation for its innovative solutions that enhance efficiency, productivity, and environmental performance in industrial and process heating. Bloom’s technologies have been instrumental in helping global metal producers and other industries achieve their sustainability goals.
The integration of Bloom Engineering into Wabtec’s portfolio marks a significant milestone in the pursuit of more efficient and sustainable industrial processes. This acquisition not only strengthens Wabtec’s market position but also reinforces its dedication to creating long-term value for its customers and stakeholders.
