On-road load-handling equipment maker Hiab has agreed to buy North American garbage truck manufacturer Labrie Environmental Group for about US$1-billion, the Finnish company said on Monday.
The acquisition, which is expected to strengthen cash generation immediately after the deal is closed, drove the company’s shares 7-per-cent higher in early trading, among top performers on Europe’s benchmark STOXX 600 index.
The transaction, valued at US$1.035-billion on a cash and debt-free basis, is expected to close in the third quarter of 2026, subject to regulatory approvals and customary closing conditions. Hiab has secured financing for the deal from Danske Bank and OP Corporate Bank.
Lévis, Quebec-based Labrie manufactures refuse vehicles at four sites across Canada, the U.S. and Mexico for the Labrie, Wittke and Leach brands. For the 12 months through March, it generated sales of US$491-million and comparable EBITDA of US$113-million, representing 23 per cent of sales.
The deal is attractively valued and would bring higher profitability than Hiab’s legacy operations, Handelsbanken analyst Timo Heinonen said
Analyst Jussi Mikkonen from OP Financial Group said the acquisition would improve Hiab’s growth potential and margins while offering longer-term synergies.