Wabtec Corporation has signed an agreement to merge its operations with General Electric Company’s business unit GE Transportation. The $11bn merger has received customary approval from the board of directors of both the firms.
Wabtec Corporation is a leading supplier of value-added, technology-based products and services for freight rail, passenger transit and select industrial markets worldwide. Through its subsidiaries, the company manufactures a broad range of products for end markets such as locomotives, freight cars, passenger transit vehicles and power generation equipment, for both original equipment and aftermarket applications. Wabtec also builds new locomotives up to 5,400 horsepower, and provides aftermarket maintenance and services for locomotives and passenger transit vehicles.
GE and its shareholders will own 50.1% of the combined firm, while Wabtec stakeholders will retain the remaining 49.9% stake.
GE will additionally receive $2.9bn in cash, upon completion of the transaction.
GE Transportation and Wabtec employ 9,000 and 18,000 personnel respectively.
Wabtec generated revenues of approximately $3.9bn, while GE Transportation recorded approximately $4.2bn in revenue in 2017.