Wabtec to Buy French Rail-Products Firm for $1.8 Billion

PITTSBURGH (Pittsburgh Post-Gazette/TNS) -

Railway-products maker Wabtec Corp. on Monday said it plans to acquire Faiveley Transport S.A., a France-based maker of rail technology systems, for about $1.8 billion.

The combination of Wabtec, based outside Pittsburgh, and Faiveley is expected to create a business with annual revenues of about $4.5 billion.

The deal includes cash and assumed debt, Wabtec said.

Faiveley employs more than 5,700 worldwide and had sales of about $1.2 billion in its most recent fiscal year. Wabtec has 13,000-plus employees and annual revenues of about $3.3 billion.

A decade ago, Faiveley bought a former Wabtec affiliate company, SAB WABCO, which makes railway braking equipment.

“We are excited by the compelling opportunities and synergies created from the combination of two rail industry leaders with historic ties, a commitment to growth and efficiency, and a focus on technology, quality and customer service,” said Albert J. Neupaver, executive chairman of Wabtec.