Hiab to Acquire Labrie Environmental Group for USD 1.035 Billion to Expand in North American Waste and Recycling Market

Hiab to Acquire Labrie Environmental Group for USD 1.035 Billion to Expand in North American Waste and Recycling Market

(IN BRIEF) Hiab Corporation has agreed to acquire Labrie Environmental Group, a leading North American refuse collection vehicle manufacturer, from Wynnchurch Capital and management minority shareholders for USD 1.035 billion on a cash and debt-free basis. The deal significantly strengthens Hiab’s position in the waste and recycling market and supports its strategy to expand into adjacent product verticals while building a new growth platform in North America. Labrie, headquartered in Lévis, Quebec, operates the Labrie, Wittke and Leach brands and provides aftermarket parts and services through LabriePlus. For the twelve months ending March 2026, Labrie generated USD 491 million in sales and USD 113 million in comparable EBITDA, representing a 23 percent margin. The company employs around 1,200 people and operates manufacturing sites in Canada, the United States and Mexico. The acquisition is expected to be margin- and growth-accretive, diversify Hiab’s sales exposure, reduce cyclicality and strengthen cash generation after closing. The transaction is expected to close in the third quarter of 2026, subject to regulatory approval and customary conditions.

(PRESS RELEASE) HELSINKI, 1-Jun-2026 — /EuropaWire/ — Hiab Corporation has entered into an agreement to acquire Labrie Environmental Group, a leading North American manufacturer of refuse collection vehicles, in a transaction that significantly expands Hiab’s position in the waste and recycling sector. The acquisition values Labrie at USD 1.035 billion on a cash and debt-free basis and is expected to close during the third quarter of 2026, subject to regulatory approval and customary closing conditions.

The acquisition marks a major step in Hiab’s growth strategy and gives the company access to the North American refuse collection vehicle market through an established platform with a strong record of profitable growth. Labrie will be acquired from Wynnchurch Capital, L.P. and management minority shareholders.

Headquartered in Lévis, Quebec, Canada, Labrie was formed in 1971 and operates through three well-established brands: Labrie, Wittke and Leach. The company also provides aftermarket parts and services through its LabriePlus brand. Labrie has built a strong market position in the side loader segment and serves customers across North America through its dealer network.

For the last twelve months ending March 2026, Labrie generated sales of USD 491 million and comparable EBITDA of USD 113 million, equal to 23 percent of sales. The company operates four manufacturing sites across Canada, the United States and Mexico, and employs approximately 1,200 people.

Hiab said the transaction supports its ambition to grow in existing end-markets through adjacent product verticals while creating a new growth platform in North America. The combination brings together complementary technologies and offerings in the essential waste and recycling industry, while diversifying Hiab’s sales exposure and reducing cyclicality.

The acquisition is expected to be both margin- and growth-accretive, with identified opportunities for procurement and sales synergies. It is also expected to strengthen cash generation immediately after closing and support Hiab’s long-term strategic expansion.

Scott Phillips, President and CEO of Hiab, said the acquisition of Labrie Environmental Group is an important milestone in the company’s growth journey and is closely aligned with the profitable growth strategy announced in 2024. He said Labrie is a market leader in waste and recycling, one of Hiab’s four focus segments, and that the transaction supports Hiab’s goals to expand in North America and increase services sales.

Phillips added that the acquisition will provide access to new resources and technologies for both companies and create value for stakeholders after closing, including enhanced career opportunities for employees of both Hiab and Labrie.

Michael Eastabrook, CEO of Labrie Environmental Group, said the agreement represents an important milestone for Labrie. He said joining Hiab will give Labrie access to a broader global platform that can accelerate its technology development and future growth.

The all-cash transaction is valued at approximately EUR 890 million using end-May 2026 European Central Bank exchange rates. The transaction value represents a multiple of approximately 9.2 times Labrie’s comparable EBITDA for the last twelve months ending March 2026.

Hiab has secured committed acquisition financing from Danske Bank A/S and OP Corporate Bank. At the end of the first quarter of 2026, Hiab reported gearing of minus 23 percent and net cash of EUR 219 million. The company said it will maintain a robust balance sheet after the transaction, supported by continued strong cash generation.

Had the transaction been completed at the end of the first quarter of 2026, the financing would have resulted in pro forma gearing of approximately 70 percent, compared with Hiab’s target of below 50 percent.

Morgan Stanley & Co. International plc is acting as exclusive financial adviser to Hiab, while Sidley Austin LLP is serving as legal adviser.

Based on illustrative combined financial information for the twelve months ending March 31, 2026, Hiab and Labrie together would have generated sales of EUR 1.966 billion and comparable EBITDA of EUR 342 million. The combined comparable EBITDA margin would have been 17 percent.

Hiab will host a conference call and press conference in Helsinki today at 10:00 am EEST for analysts, investors and media. The transaction will be presented by President and CEO Scott Phillips and CFO Mikko Puolakka.

Hiab (Nasdaq Helsinki: HIAB) is a leading provider of smart and sustainable on road load-handling solutions, committed to delivering the best customer experience every day with the most engaged people and partners. Globally, Hiab is represented on every continent through its extensive network of 3,000 own and partner sales and service locations, enabling delivery to over 100 countries. The company’s sales in 2025 totalled approximately EUR 1.6 billion and it employs approximately 4,000 people. www.hiabgroup.com

Media Contacts:

Birgitte Skade, Executive Vice President, Marketing and Communications
Email: birgitte.skade@hiab.com, tel. +358 20 777 4000

Further information for investors:
Aki Vesikallio, Vice President, Investor Relations, tel. +358 40 729 1670

SOURCE: HIAB