Monday, March 15, 2010

Wabtec buys Xorail for $40 million cash

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Wabtec Corp. announced Monday that it has purchased Xorail LLC for $40 million in cash and that it expects the transaction to be accretive in the first year.

Based in Jacksonville, Fla., Xorail has annual revenue of about $40 million from the sale of engineering, design, and construction services, mainly for railway signaling systems. These include wayside signaling, positive train control, and grade crossing warning systems for Class I railroads and passenger transit authorities in North America.

Founded in 1990 as Southwest Signal Engineering Company, Xorail now has 10 satellite offices with about 275 employees. Kash Krishnarao, president of Xorail, will remain with the company.

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“Xorail's engineering and wayside capabilities are a good fit with our existing railway electronics business,” said Albert J.Neupaver, Wabtec's president and chief executive officer. “In addition, these capabilities position Wabtec for a larger role as the rail industry implements positive train control technology over the next several years.”

Wabtec Corp. is a global provider of value-added, technology-based products and services for the rail industry. Through its subsidiaries, the company manufactures a range of products for locomotives, freight cars, and passenger transit vehicles. The company also builds new switcher and commuter locomotives, and provides aftermarket services. The company has facilities located throughout the world.