Inside information: Hiab significantly strengthens its position in waste & recycling by acquiring refuse collection vehicle manufacturer Labrie Environmental Group

Labrie Environmental Group is a market leader with strong financial profile

Formed in 1971 and headquartered in Lévis, Quebec, Canada, Labrie Environmental Group is a leading North American provider of RCVs, 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 last twelve months ending March 2026, the company generated sales of USD 491 million. Comparable EBITDA for the same period totalled USD 113 million, representing 23 percent of sales. 

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 provides 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 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 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. Labrie is a market leader in an attractive and growing market in one of our four focus segments, waste and recycling. The acquisition also supports our ambitions to grow in North America and increase our services sales. It also provides access to new resources and technologies for both companies. Importantly, the transaction is expected to strengthen cash generation immediately following closing while simultaneously opening new avenues for growth. We expect this transaction to deliver significant value for all stakeholders post-closing, including enhanced career opportunities for both Hiab and Labrie employees", said Hiab President and CEO Scott Phillips. 

“Today is an important milestone for Labrie. By joining Hiab, we are gaining access to a comprehensive global platform that will accelerate our technology development and growth. I am incredibly proud of what we have built and excited for our next chapter", said Labrie Environmental Group’s CEO Michael Eastabrook.

The all-cash transaction is valued at USD 1,035 million and is expected to close in the third quarter

The transaction is valued at USD 1,035 million on a cash and debt-free basis (approximately EUR 890 million calculated with end of May 2026 ECB exchange rates). The transaction value represents a multiple of approximately 9.2x the company’s end of March 2026 LTM Comparable EBITDA.

Hiab has entered into a committed financing arrangement with Danske Bank A/S and OP Corporate Bank to secure the funding for the acquisition. At the end of the first quarter of 2026, Hiab’s gearing was -23 percent and net cash amounted to EUR 219 million. Hiab will continue to maintain a robust balance sheet following the transaction, supported by strong ongoing cash generation. Had the acquisition been completed at the end of the first quarter of 2026, the latest financial period published by Hiab, the planned financing would have resulted in a pro forma gearing of approximately 70 percent, compared to the company’s target of below 50 percent.

The acquisition is expected to be completed during the third quarter of 2026, subject to regulatory approval and customary closing conditions.

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

Illustrative combined financials

The illustrative combined financial information presented below is based on the aggregated financial information of Hiab prepared under IFRS accounting standards and Labrie Environmental Group prepared under US GAAP for the last twelve-month period ended 31 March 2026. Figures have been converted from USD to EUR with the same exchange rates as Hiab has used in its own reporting on the same periods: monthly average rates in profit or loss items and month end rates in assets and liabilities.

The combined financial information is presented for illustrative purposes only, reflecting a hypothetical situation and is unaudited. The combined financial information does not reflect any potential adjustments in accordance with the terms of the share purchase agreement, the effects of purchase price allocation, the harmonisation of differences in accounting policies, adjustments related to transaction costs, tax effects or the effects of any refinancing, and should therefore not be regarded as pro forma financial information. The combined financial information does not reflect any expected synergies or future integration costs that are expected to arise or may arise as a result of the transaction.

^{1) Does not include any impacts of purchase price allocation or alignment of accounting policies
2) Includes goodwill amortisation of EUR 22.0 million
3) Hiab’s net debt of EUR -219 million as at 31 March 2026 combined with an enterprise value of approximately EUR 900 million calculated with end of March 2026 exchange rates}

Conference call at 10:00 am (EEST) and press conference in Helsinki 

A live conference for analysts, investors and media will be arranged today at 10:00 am EEST at Flik Event Studio Eliel, Sanomatalo, Töölönlahdenkatu 2, Helsinki. The event will be held in English. The transaction will be presented by Hiab’s President and CEO Scott Phillips and CFO Mikko Puolakka.

The conference can also be accessed via telephone. To ask questions during the conference, please register via the following link: https://events.inderes.com/hiab/2026-event/dial-in. After the registration, the conference phone numbers and a conference ID to access the conference will be provided. 

The event can also be viewed as a live webcast at https://hiab.events.inderes.com/2026-event.

A link to the recording of the event will be published on Hiab’s website later during the day.
Please note that by dialling into the conference call, the participant agrees that personal
information such as name and company name will be collected.

To book a management interview, please do not hesitate to contact Hiab’s communications team at communications@hiab.com.

More information about Hiab and Labrie Environmental Group
www.hiabgroup.com
www.labriegroup.com

Hiab Corporation
Board of Directors

For further information, please contact:
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

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

Appendix 1

SUMMARY OF FINANCIAL INFORMATION

Labrie Environmental Group key financial information

The following key financial information for Labrie Environmental Group have been derived from the consolidated financial statements for the financial years 2025 and 2024 prepared in accordance with Generally Accepted Accounting Principles in the United States (“US GAAP”). Figures have been converted from USD to EUR with the same exchange rates as Hiab has used in its own reporting on the same periods: monthly average rates in profit or loss items and month end rates in assets and liabilities.

Statement of profit or loss information

The operating profit and EBITDA figures presented in this announcement are not presented as separate subtotals in Labrie’s audited consolidated financial statements. The following calculation formulas have been applied in determining these figures:
Operating profit = Income before income taxes + Interest on long-term debt + Other interest
EBITDA = Operating profit + Depreciation of property and equipment + Amortization of intangible assets + Amortization of goodwill

Statement of financial position information