Hiab expands garbage segment with $1 billion Labrie deal
Key Highlights
- - Hiab's acquisition of Labrie enhances its presence in the North American waste and recycling market, a key growth segment.
- - The deal is valued at over $1 billion, with a multiple of approximately 9.2x EBITDA, and is expected to close in Q3 2026 pending regulatory approval.
- - The combined capabilities of Hiab and Labrie are expected to generate procurement and sales synergies, reducing cyclicality and increasing margins.
- - Labrie, operating across three brands and four manufacturing sites, has demonstrated resilient growth with $491 million in sales and $113 million EBITDA over 12 months.
- - The acquisition aligns with Hiab’s strategy of profitable growth, expanding its product verticals and establishing a new platform in North America.
Global load handling equipment specialist Hiab Corporation has “significantly” strengthened its position in the North American waste and recycling market. The Helsinki-based manufacturer reported June 1 an agreement to acquire Labrie Environmental Group a leading refuse collection vehicle manufacturer headquartered in Lévis, Quebec. The deal with Wynnchurch Capital L.P. and management minority shareholders was priced at an enterprise value of just over US $1 billion.
Formed in 1971, Labrie is a leading North American provider of garbage trucks, operating across three established brands: Labrie, Wittke and Leach. It also provides aftermarket parts and services through its LabriePlus brand.
The company has demonstrated resilient growth and built a leading market position in the attractive side loader market. For the 12 months ending in March, the company generated sales of $491 million. Comparable EBITDA for the same period totaled $113 million, representing 23% of sales, according to the deal announcement.
The company generates all its sales in North America from equipment, spare parts and services, sold through its dealer network. The company operates four manufacturing sites across Canada, the United States and Mexico, and employs approximately 1,200 people.
Compelling strategic rationale
The acquisition is designed to provide Hiab access to the growing North American RCV market through a leading platform with a strong track record of profitable growth. It represents the next step in Hiab's inorganic growth strategy, aligned with its ambition to expand its presence in existing end-markets through adjacent product verticals, while establishing a new growth platform in North America, the company suggested.
The combined capabilities of the two companies represent a “perfect technological and mission fit” with complementary offerings in the essential industry of waste and recycling. The acquisition also diversifies Hiab’s sales exposure, reduces cyclicality and is expected to be both margin- and growth-accretive with identified opportunities for procurement and sales synergies.
“The acquisition of Labrie Environmental Group is a significant milestone in our growth journey and perfectly aligned with our strategy of profitable growth communicated in 2024,” said Hiab President and CEO Scott Phillips. “Labrie is a market leader in an attractive and growing market in one of our four focus segments, waste and recycling. It also provides access to new resources and technologies for both companies.”
Additionally, the transaction is expected to strengthen cash generation immediately following closing while simultaneously opening new avenues for growth, he noted.
“We expect this transaction to deliver significant value for all stakeholders post-closing, including enhanced career opportunities for both Hiab and Labrie employees,” Phillips said
The deal is “an important milestone: for Labrie, added Labrie Environmental Group CEO Michael Eastabrook.
“By joining Hiab, we are gaining access to a comprehensive global platform that will accelerate our technology development and growth,” Eastbrook said. “I am incredibly proud of what we have built and excited for our next chapter.”
The transaction, valued at $1.035 million on a cash and debt-free basis represents a multiple of approximately 9.2x the company’s end of March 2026 LTM comparable EBITDA. The acquisition is expected to be completed during the third quarter of 2026, subject to regulatory approval and customary closing conditions.
Hiab has entered into a committed financing arrangement with Danske Bank A/S and OP Corporate Bank to secure the funding for the acquisition. Morgan Stanley & Co. International plc is acting as exclusive financial advisor to Hiab, and Sidley Austin LLP is serving as legal advisor.