Wabtec-GE merger moving ahead

Written by Railway Age Staff
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GE locomotives undergoing rebuilding and upgrading at GE Transportation’s Fort Worth, Tex. plant. One-thousand units are in the pipeline. William C. Vantuono photo.

Wabtec Corp. today said it is progressing with its proposed merger with GE Transportation and filed a proxy statement with the SEC.

“The company continues to make progress in its planned merger with GE Transportation, including today the successful execution and settlement of $500 million of three-year Floating Rate Notes and $2 billion of five-year and 10-year Senior Notes to fund a majority of the cash requirements for the transaction.

Wabtec expects the transaction to be completed by early 2019.

The company, headquartered in Wilmerding, Pa., affirmed the financial aspects of the transaction announced in May, including GE Transportation’s estimated adjusted pre-tax earnings growing to between $900 million and $1 billion in 2019.

The combined company will have around $8 billion in revenue, according to Wabtec.

“Upon completion of the merger, we believe we will be poised to drive strong growth in 2019 and beyond and well-positioned to serve customers as industry demand continues to improve,” Wabtec stated.

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