Wabtec closing in on $20bn GE Transportation deal

Wabtec GE Transportation Merge To Form Transportation Systems Holdings In $11 Billion Deal

General Electric said Monday it will merge its train engine division with railroad manufacturing firm Wabtec in an $11.1 billion deal that marks the biggest step so far in GE's restructuring of its operations. During the same quarter a year ago, the company earned $0.77 earnings per share. The century-old GE Transportation - one of eight major GE segments - was seen as a prime candidate for divestiture even as GE shrank its portfolio by shedding health care technology and other smaller assets.

GE's transportation unit had been speculated about for months as a potential target for a spin-off or sale as the Boston-based industrial giant looked to restructure its businesses and turn around lagging financial performance.

Wabtec Chairman Albert Neupaver has been named Executive Chairman of the merged company, and Raymond Betler will be President and CEO, retaining his current Wabtec role.

The GE Transportation business is positioned for a significant rebound, with estimated adjusted earnings before interest, taxes, deprecation and amortization (EBITDA) growing from about $750 million in 2018 to between $900 million and $1 billion in 2019.

Wabtec shares traded up about 2.3% to $97.35, in a 52-week range of $69.20 to $95.54. And it's just Wabtec, with none of the ham-handed nonsense that gave us Baker Hughes, a GE Co. "There has been a relationship between (us) that goes back decades", he said. GE Transportation chief Rafael Santana will run Wabtec's freight segment.

George Clooney and Wife Expected to Attend Royal Wedding
Princess Charlotte waves as she rides in a vehicle to the wedding ceremony of Prince Harry and Meghan Markle at St. Charlotte stood smiling as she listened to This Little Light of Mine after Meghan and Harry left the chapel.

The combined company will have about $8 billion in annual revenue, with GE Transportation's backlog of orders numbering 1,800 locomotives at present. The company has a market capitalization of $9.17 billion, a PE ratio of 27.75, a P/E/G ratio of 2.15 and a beta of 0.91.

The deal will add more offerings that can improve efficiency and safety to GE's customers, which include Komatsu Ltd and Rio Tinto PLC, as well as Wabtec's client base which includes Siemens AG and Bombardier Inc, Santana added.

The company's transportation business, which past year had $4.7 billion in revenue, manufactures passenger and freight trains, mining equipment and marine diesel engines, amongst others.

The stocks of GE has, however, lost about half its value in the previous year, and the company has been working with activist hedge fund Trian Fund Management, which sits on its board of directors, to turn the business around.

Related news:

Hot News

isis-killer-beheading-video-story-top Samsung launches Galaxy A6, A6+ with AI camera; price, specifications, availability
May 22, 2018 - 15:29
These hit similar beats to the J6 and J8, with the A6 Plus being bigger, housing a larger battery , and including dual cameras. Galaxy A6 is available in two storage variants - 32GB & 64GB - and is priced at Rs. 21,990 and Rs. 22,990 respectively.

isis-killer-beheading-video-story-top Trump Is Now Fundraising Off Conspiracy Theory That FBI "Infiltrated" His Campaign
May 22, 2018 - 09:55
Democrats, however, have maintained the independence of Special Counsel Robert Mueller's investigation should remain unimpeded. Vice President Mike Pence said Trump was "grateful" the Justice Department would investigate.

isis-killer-beheading-video-story-top Maddie Poppe's Original "American Idol" Single Leading On iTunes Sales Chart
May 22, 2018 - 09:30
Maddie later took the stage to perform her own new song, "Going Going Gone", written by unbelievable songwriter Julia Michaels . Unlike NBC " The Voice ", ABC's " American Idol " does not incorporate iTunes downloads into its vote totals.

isis-killer-beheading-video-story-top Vegas Play of the Day: Cavaliers vs. Celtics
May 22, 2018 - 09:23
That said, Game 4 is now an incredibly important game. "I just think that we were a little out of sync", Horford said. Upset with his lack of aggression, Brown said he plans to the use the poor performance as fuel for Game 4 Monday.

isis-killer-beheading-video-story-top Deadly acid cloud rises over Hawaii as lava streams into ocean
May 22, 2018 - 09:01
The Star-Advertiser reported Sunday morning that sulfur dioxide levels have tripled due to two lava flows entering the ocean. In other words, the ash-filled eruptions and massive evacuations are unusual - but lava flows from Kilauea are not.

isis-killer-beheading-video-story-top Donald Glover on Lando's sexuality in Solo: A Star Wars Story
May 22, 2018 - 09:00
There will also be graphic t-shirts, hats, jackets, and more available for people who want to grab some Star Wars to wear. So while Lando could shape up to be the "greatest story ever told" since Star Wars , it's not a done deal by any means.

isis-killer-beheading-video-story-top Rockets in 60 seconds: Players confident they'll bounce back in Game 4
May 22, 2018 - 08:59
Iguodala is averaging 8.7 points, 4.3 rebounds and 1.7 assists through three games of the series. "She's right", Steph said . The two teams split the first 2 games and now the Warriors have a 2-1 lead. 'All it takes is one, ' Kerr said.

isis-killer-beheading-video-story-top Wall Street forges higher on China-US trade truce cheer
May 22, 2018 - 08:58
The Russell 2000 index of smaller-company stocks set another record close as it jumped 10.81 points, or 0.7 percent, to 1,637.44. China is promising to increase its imports of United States agriculture and energy goods, much to the White House's pleasure.

isis-killer-beheading-video-story-top Maryland officer dies after confronting suspects in Jeep
May 22, 2018 - 08:56
Parents were told not to respond to the schools, but instead to call the school administrators for more information. Ten officers have died in the line of duty in Baltimore County, according to the Officer Down Memorial Page .

isis-killer-beheading-video-story-top Pope Francis Appoints 14 New Cardinals From Five Continents
May 22, 2018 - 08:55
The pope loves you like this; you have to be happy with who you are". "If a person is gay and seeks God, who am I to judge? ". The Vatican has preferred to withhold comment on private conversations the Holy Father has had.

isis-killer-beheading-video-story-top Overflow Crowd Attends Funeral Of Pakistani Girl Killed In Texas
May 22, 2018 - 08:54
Or at least sends a message saying she'll call back soon. "She and two other students and a teacher hid in the classroom. Tisdale's niece, Leia Olinde, said Tisdale was like a mother to her and helped her shop for wedding dresses a year ago .

isis-killer-beheading-video-story-top Sanders announces Senate re-election bid
May 22, 2018 - 08:45
In the past, he has turned down the Democratic nomination while accepting the Vermont Democratic Party's formal endorsement. The college later had to fold , in large part due to the real estate debt the school incurred during her tenure.

isis-killer-beheading-video-story-top Mario Batali under investigation by NYPD for sexual assault, '60 Minutes' reports
May 22, 2018 - 03:26
An unnamed former employee of his Spotted Pig restaurant accused Batali of drugging and sexually assaulting her in 2005. At the beginning of the segment, former employee Trish Nelson stated, "I think Mario Batali is a monster".

isis-killer-beheading-video-story-top US Unveils '12 Requirements' for New Iran Agreement
May 21, 2018 - 22:28
The latest announcement, one Iranian official said on Monday, was proof the U.S. is seeking regime change in Tehran. The deal lifted some sanctions in exchange for for Iran limiting its nuclear activities to peaceful purposes.

isis-killer-beheading-video-story-top Priyanka Chopra Arrives At The Royal Wedding Looking Nothing Less Than Royalty
May 21, 2018 - 22:12
Last month, Priyanka Chopra told People magazine that she's super excited about Meghan Markle's big day. The actress, who has been promoting " Quantico " in NY , arrived in London today.