EQT Acquires Dellner Couplers, a Global Leader in Train Connection Systems for Passenger Rail
The EQT VIII fund (“EQT” or “EQT VIII”) has entered into an agreement to acquire Dellner Couplers (”Dellner” or “the Company”), a global leader in train connection systems for passenger rail.
Founded 1941 in Sweden, Dellner has grown from being a small couplers producer to a global niche market leader in safety-critical components for passenger rail rolling stock. Today, Dellner offers full train connection systems including couplers, gangways, hatches, dampers, and crash management systems, complemented by after-sales services and support. The Company is headquartered in Vika (Falun), Sweden, employs approximately 950 people globally, and generated sales of approximately SEK 1.9 billion in 2018.
EQT will support Dellner and the management team with further investments in R&D and innovation initiatives and accelerate global growth by contributing EQT’s strong industrial expertise and network of Industrial Advisors. The growth of Dellner will be supported by an industrial Board of Directors with significant Industrial Tech expertise.
The investment is in line with EQT’s thematic approach of investing with the trend in businesses with positive societal impact, advancing the progress of one or more of the United Nations Sustainable Development Goals (“SDG”). Dellner contributes to society by developing products that promote and enable safe and sustainable public rail transportation and EQT will support the Company to stay in the forefront of sustainability.
David Pagels, CEO of Dellner, said: “We are very excited to have EQT as our new owners and look forward to working together on the next chapter in Dellner’s history. EQT’s industrial heritage and investment approach is a perfect fit for Dellner’s next development phase. We are looking forward to growing our business through innovations in our product and service offerings, while continuing to deliver safe, high quality products and excellent after-sales support to meet the evolving demands of our valuable customers.”
Carl Johan Renström, Partner at EQT Partners and Investment Advisor to EQT VIII, said: “The passenger rail market is resilient and growing, and Dellner is uniquely positioned with significant potential. EQT is deeply impressed with what the Dellner management team has achieved and looks forward to supporting the team to further develop the Company.”
Therése Lennehag, Head of Sustainability at EQT Partners, added: “Rail is the most energy efficient solution for passenger and freight transport and is an important part of a future low to zero-emission mobility system. From a social perspective, rail offers not only the safest mean of transportation, it is also affordable and accessible for everyone. A natural part of the solution to achieve SDG 11 Sustainable Cities and Communities.”
The transaction is expected to close subject to customary approvals in June 2019. The parties have agreed not to disclose the transaction value.
Dellner is a Swedish company with more than 75 years of experience in the rail industry. The company serves all of the world’s leading train builders and operators by providing safe, durable, reliable and innovative products and services. Dellner offers full Train Connection Systems including couplers, gangways, hatches, dampers, and crash management systems, complemented by superior after sales service and technical support. Dellner’s headquarters are located in Sweden with a global network of subsidiaries, branches and agents in 16 countries all over the world.
Source: EQT press release