WILMERDING, Pa. and CHICAGO — Wabtec and GE Transportation are combining, according to a statement released at 7 a.m. Eastern time today, creating what Wabtec says will be a “Fortune 500 company [and a] global leader in rail equipment, software and services, with operations in more than 50 countries” and approximately $8 billion in revenues.
GE had announced in November 2017 its desire to sell its transportation unit, the leader in locomotive production which is also involved in the marine, mining, stationary power, and drilling industries. Wabtec, which makes equipment and systems for passenger and freight railroads, had recently emerged as the most likely buyer.
Wabtec says the transaction is valued at approximately $10 billion, after adjusting for the tax benefits to the new company. While Wabtec is calling the transaction a merger, GE will receive a $2.9 billion up-front cash payment, and GE and its shareholders will receive 50.1 percent interest in the new company.
Wabtec Chariman Albert J. Neupaver will be executive chairman of the new company. Rafael Santana, president and CEO of GE transportation, becomes president of Wabtec’s freight segment. Wilmerding, near Pittsburgh, will remain corporate headquarters, with the freight segment based in Chicago.
Trains News Wire will have more on this developing story as it becomes available.
