Wabtec, GE Transportation To Merge In $11.1 Bln Deal - Quick Facts

(RTTNews) - Wabtec Corp. (WAB) announced it a definitive agreement to combine with GE Transportation, a unit of General Electric Company (GE). GE will receive $2.9 billion in cash at closing and GE and its shareholders will receive a 50.1% ownership interest in the combined company, with Wabtec shareholders retaining 49.9% of the combined company. The value of the transaction is approximately $11.1 billion. When adjusted for the net tax step-up value of $1.1 billion accruing to the combined company, the transaction value is $10 billion. The deal is expected to close in early 2019.

Effective immediately, Wabtec Chairman Albert Neupaver has been re-appointed executive chairman of the company, while Raymond Betler remains Wabtec's president and CEO. Following the completion of the transaction, Stéphane Rambaud-Measson will become president and CEO of Wabtec's Transit Segment; and Rafael Santana, president and CEO of GE Transportation, will become president and CEO of Wabtec's Freight Segment.

Following the transaction, Wabtec will have approximately $8 billion in revenues, a more diversified business mix, higher margins, and approximately 15 percent cash EPS accretion in year one.