Wabash National Announces Sale of Extract Technology to Dietrich Engineering Consultants SA

Rhea-AI Summary

Wabash National Corporation (NYSE: WNC) announced the sale of Extract Technology to Dietrich Engineering Consultants SA, effective June 30, 2021. Extract Technology, a supplier of containment and aseptic systems, generated approximately $22 million in sales in 2020. The divestiture aligns with Wabash’s strategic focus on transportation, logistics, and distribution markets. Senior Vice President Mike Pettit emphasized that the sale allows the company to concentrate on core growth areas such as home delivery and cold chain solutions.

Positive

• Strategic divestiture strengthens focus on core markets.
• Extraction Technology's sale aligns with growth initiatives in transportation and logistics.
• The transaction enables Wabash to concentrate resources on home delivery and cold chain sectors.

Negative

• Divesting a $22 million sales business may impact short-term revenue.
• -

LAFAYETTE, Ind., July 01, 2021 (GLOBE NEWSWIRE) -- Wabash National Corporation (NYSE: WNC) today announced the sale of Extract Technology to Lausanne, Switzerland-based Dietrich Engineering Consultants SA (DEC), a portfolio company of Berlin, Germany-based capiton AG. Extract Technology, based in Huddersfield, United Kingdom, is a leading worldwide supplier of containment and aseptic systems for the pharmaceutical, healthcare, biotech and chemical markets.

“Along with our company’s purpose of Changing How the World Reaches You™, we have refined our vision to focus on providing engineered solutions for the transportation, logistics and distribution industries,” said Mike Pettit, senior vice president and chief financial officer. “Although Extract Technology is an excellent business, its solutions and customers do not align with our core markets. We believe the Extract team and its customers will thrive with DEC because it is dedicated to investing in the broader pharmaceutical and medical industries.”

Extract Technology joined Wabash National in 2012 as part of the Walker Group Holdings acquisition. Extract Technology represented approximately $22M of sales in 2020 and was reported within Wabash National’s Diversified Products Group segment.

“With the sale of Extract Technology, which comes on the heels of divesting Beall tank trailers and our last remaining Wabash National Trailer Center retail branch, we are confident our portfolio of businesses is well structured to support our strategic growth initiatives in the areas of home delivery, cold chain, and upfitting, parts and services,” Pettit added.

The sale closed June 30, 2021, with Extract Technology continuing operations under the ownership of DEC.

Cowen Inc. served as a financial advisor to Wabash National, and Foley & Lardner LLP served as legal counsel.

About Wabash National Corporation
As the innovation leader of engineered solutions for the transportation, logistics and distribution industries, Wabash National Corporation (NYSE:WNC) is Changing How the World Reaches You™. Headquartered in Lafayette, Indiana, the company’s mission is to enable customers to succeed with breakthrough ideas and solutions that help them move everything from first to final mile. Wabash National designs and manufactures a diverse range of products, including: dry freight and refrigerated trailers, platform trailers, bulk tank trailers, dry and refrigerated truck bodies, structural composite panels and products, trailer aerodynamic solutions, and specialty food grade equipment. Its innovative products are sold under the following brand names: Wabash National®, Benson®, Brenner® Tank, Bulk Tank International, DuraPlate®, Supreme®, Transcraft®, Walker Engineered Products, and Walker Transport. Learn more at www.wabashnational.com.

Media Contact:
Dana Stelsel
Director, Communications
(765) 771-5766
dana.stelsel@wabashnational.com

Investor Relations:
Ryan Reed
Director, Corporate Development & Investor Relations
(765) 490-5664
ryan.reed@wabashnational.com

FAQ

What did Wabash National Corporation announce on July 1, 2021?

Wabash National announced the sale of Extract Technology to Dietrich Engineering Consultants SA.

How much did Extract Technology contribute in sales in 2020?

Extract Technology represented approximately $22 million in sales in 2020.

Why did Wabash National sell Extract Technology?

The sale allows Wabash to focus on its core markets in transportation, logistics, and distribution.

When did the sale of Extract Technology close?

The sale closed on June 30, 2021.

Who advised Wabash National on the sale of Extract Technology?

Cowen Inc. served as the financial advisor, and Foley & Lardner LLP provided legal counsel.