General Electric Co. agreed to merge its century-old locomotive business with rail-equipment maker Wabtec Corp. in a deal valued at $11.1 billion, the biggest step yet in Chief Executive Officer John Flannery's plan to shed unwanted units and revitalize the beleaguered manufacturer. GE will receive $2.9 billion in cash while the company and its shareholders take a 50.1% stake in the combined entity, according to a statement Monday. Wabtec shareholders will hold the rest after the tax-free transaction, which is expected to close early next year. The deal is transformative for Wabtec, which will roughly double its annual revenue by adding one of the world's largest makers of freight locomotives and rail equipment. The Wilmerding, Pa.-based company said it was attracted to the complementary products and a growing order book after several lean years for the industry.
Quick Manufacturing News, 21st May 2018