Hiab expands in waste vehicles with Labrie deal

Finnish-listed Hiab has agreed to buy Labrie Environmental Group for $1.04 billion, moving into North America’s refuse collection vehicle market through one of the sector’s established manufacturers and adding a higher-margin platform to its load-handling equipment business.

The all-cash acquisition values Labrie at $1.035 billion on a cash- and debt-free basis, equivalent to about €890 million using end-May European Central Bank exchange rates. The deal is expected to close in the third quarter of 2026, subject to regulatory approvals and customary conditions.

Labrie, headquartered in Lévis, Quebec, manufactures refuse collection vehicles under the Labrie, Leach and Wittke brands and sells equipment, spare parts and services through a dealer network across the United States and Canada. The company operates four manufacturing sites across Canada, the United States and Mexico and employs about 1,200 people.

For the 12 months ended March 2026, Labrie generated $491 million in sales and comparable earnings before interest, taxes, depreciation and amortisation of $113 million, implying a margin of 23 per cent. The transaction price represents about 9.2 times that comparable EBITDA figure, a valuation that reflects the defensive nature of municipal waste collection, aftermarket services and demand for automated refuse vehicles.

Hiab, formerly part of Cargotec, has been reshaped as a focused load-handling group after the separation of Kalmar and the sale of MacGregor. The company now sells equipment such as loader cranes, truck-mounted forklifts, demountables, hooklifts, forestry and recycling cranes, tail lifts and related services. The Labrie acquisition is its largest step into an adjacent vehicle vertical since that restructuring.

The acquisition gives Hiab a stronger base in North America, where waste and recycling has become a priority segment for equipment makers seeking stable demand from municipalities, private haulers and fleet operators. Refuse collection vehicles are tied to essential services, making the market less exposed to sharp industrial cycles than some construction and cargo-handling equipment lines.

Hiab said the deal would strengthen cash generation immediately after closing while broadening its services revenue. The group has identified potential procurement and sales synergies, helped by overlap in customers, distribution channels and service needs. Labrie’s aftermarket operations under the LabriePlus brand are likely to be central to the integration plan, as spare parts and maintenance tend to support steadier margins than original equipment sales.

Financing has been arranged through Danske Bank and OP Corporate Bank. Hiab ended the first quarter of 2026 with net cash of €219 million and gearing of minus 23 per cent. Had the transaction closed at the end of that quarter, pro forma gearing would have been about 70 per cent, above the company’s target of below 50 per cent. That shift underlines the scale of the acquisition and will place attention on post-deal deleveraging, cash conversion and execution risk.

Hiab president and chief executive Scott Phillips has described the acquisition as aligned with the company’s profitable growth strategy and said Labrie provides access to new resources and technologies. Labrie chief executive Michael Eastabrook said joining Hiab would give the company a wider global platform and accelerate technology development.

The deal also reflects consolidation in solid waste and recycling equipment. Large manufacturers have been expanding into refuse collection, recycling systems, compaction and aftermarket services as cities and haulers upgrade fleets, seek automation and respond to labour constraints. Demand is also being shaped by interest in lower-emission vehicles, compressed natural gas fleets, electric refuse trucks and higher-efficiency collection systems.

Labrie’s key product categories include automated side loaders, front loaders and rear loaders. Automated side loaders are particularly important in North America because they reduce manual handling, improve route productivity and can help operators manage driver shortages. The company’s long operating history, dealer coverage and established brands make it a strategic target for a buyer seeking immediate scale rather than building a refuse vehicle platform from scratch.

For Wynnchurch Capital, which acquired Labrie in 2020, the sale marks an exit from a business it backed through capacity expansion, market penetration and aftermarket growth. The private equity firm had positioned Labrie as a platform in essential residential waste collection, a market with recurring fleet replacement and service requirements.

Competitive pressure will remain significant. Labrie operates against major North American and international players in refuse equipment, including companies linked to broader industrial groups with strong manufacturing capacity and dealer networks. Hiab’s challenge will be to preserve Labrie’s brand strength and customer relationships while using its own engineering, procurement and service infrastructure to improve scale.