RELCO Locomotives, a suburban Chicago-based company with engineering and support services in Cedar Rapids, has agreed to be purchased by Wabtec Corp. for $29 million.
The cash-free and debt-free acquisition will expand Wabtec’s freight services capabilities and capacity to support growth in the remanufacturing and repair business.
RELCO’s main shop in Albia, Iowa, is capable of manufacturing 23 locomotives at the same time.
RELCO bought 80-year-old Pickwick Manufacturing at 4200 Thomas Dr. SW in Cedar Rapids for $5.8 million in March 2019. The purchase included nine industrial buildings with a total of 89,000 square feet of space on a 20-acre site.
RELCO’s projected sales for 2019 are roughly $50 million.
Wabtec, based in Wilmerding, Pa., is a publicly traded company with about 27,000 employees in facilities throughout the world. The company has projected sales of $8.2 billion for 2019.
Wabtec finalized its merger with locomotive manufacturer GE Transportation in February 2019.
Wabtec also owns Westinghouse Air Brake, corporate parent of Wabtec Railway Electronics, which has operations at 5250 N. River Blvd. NE in Cedar Rapids.
Wabtec Railway Electronics was formerly Rockwell Railroad Electronics, which was purchased by Wabtec from Rockwell Collins of Cedar Rapids in October 1998 for $80 million.