Wabtec, or Westinghouse Air Brake Technologies Corporation, now has a market capitalization of $9.2bn in the rail and transit industry, whilst GE Transportation generated $4.7bn in annual revenues in 2017.
Wabtec Chairman Albert J. Neupaver will be the new firm's executive chairman, and Raymond T. Betler, the company's president and CEO, will hold the same roles with the new concern.
GE will receive $2.9 billion in cash upon closing, with GE shareholders receiving a 50.1 percent ownership interest in the combined company and Wabtec shareholders retaining 49.9 percent of the combined company.
Several actions have been taken by GE to cut back on it portfolio over the last few years, as its cuts plastics, NBCUniversal, as well as the majority of its GE Capital business. Wabtec's freight segment will be based in Chicago, GE Transportation's current headquarters. General Electric did something similar in forging Baker Hughes, a GE Co.
Trump tightens Venezuela financial sanctions after 'sham' vote
Workers at the Red Spots said that there was no effort to pressure voters or link a pro-Maduro vote to future food deliveries. But it's safe to say that the winners were whoever Castro's Cuba-which runs Venezuela-decided they would be.
Flannery told GE's annual shareholder meeting last month that the company is "keenly aware of the pain" caused by its poor performance and dividend cut a year ago.
GE Transportation generated $3.7 billion in revenue previous year but did not fit into CEO John Flannery's strategy of focusing on three core segments: power, including renewable energy, aviation, and health care.
It wouldn't be surprising to see GE pursue similar structures for other pieces of its business. "Complementary businesses and large global installed base will create additional opportunities for cross-selling, aftermarket services growth and new solutions in a rapidly evolving industry".
The companies emphasized that the deal is being done during a strong recovery cycle for North American railcar demand. After the transaction, Wabtec will have about $8 billion in revenue, a more diversified business mix, higher margins and about 15 percent cash earnings per share accretion in year one, officials said. A pilot program at Long Beach will also launch in July. If you're not already logged in, you will be asked to log in or register. We'd like to hear from you. Last year, John Flannery took over the reins of GE and chose to reduce the firm's costs by Dollars 2 billion this year, slashing the firm's dividend to half. All comments are eligible for publication in the letters section of DC VELOCITY magazine.