GE to sell GETS (GE Transportation GE Rail) to WABTEC

[mtuandrew]

If someone had told me in 1998 that MPI would own GETS and Cat would own EMD instead of the reverse, I would have told you that you were crazy.

Interesting ownership structure... one that could mean GE could later merge the whole WABTEC consortium if its stockholders like the ROI.

[Gilbert B Norman]

Here was likely Westinghouse's last hurrah building a locomotive as prime - contractor:

https://en.wikipedia.org/wiki/Pennsylva ... _class_E3c" onclick="window.open(this.href);return false;

The bodies were "subbed" to Baldwin.

[jamoldover]

You do realize we're talking about a different Westinghouse here...

Westinghouse Air Brake (now WABCO, the company GETS is being merged with) is not the same company as Westinghouse Electric (who was the locomotive builder). While George Westinghouse may have been the founder of both companies, they've never been under common ownership.

[Ira]

Wondering what will become of the Erie plant moving forward.

[Allen Hazen]

What Jamoldover said.
Both companies had presence in the Pittsburgh area when I lived in Pittsburgh in the early-mid 1970s, and were known as Wemco (W'house Electrical and Machinery, I think: the company that built some early diesel locomotives in the 1920s/1930s, and (often with mechanical portions by Baldwin) many PRR (and other) electric locomotives), vs. Wabco (W'house Air Brake), the ancestor of the Wabtech that is merging with GETS.

For those interested in non-electric, non-diesel, locomotives... PRR 4483, the last surviving I-1sa, now at a railroad museum in upstate New York, spent a number of years on the front lawn of the Wabco plant in Wilmerding/Turtle Creek (eastern suburb of Pittsburgh), visible from the PRR main line.

[Gilbert B Norman]

Here's more regarding the locomotive noted by Mr. Hazen:

http://www.trainweb.org/wnyrhs/4483Frame1Source1.htm" onclick="window.open(this.href);return false;

[XC Tower]

Curious here about the fate of GE's Erie Plant....Is everything in a holding pattern pending a decision regarding WABTEC's purchase?....I am a bit confused over this. Is it a purchase of GETS or a merger?..
Thank you for any clarification.



XC

[Jeff Smith]

Final consummation to take place by early 2019: railwayage.com

Wabtec-GE merger moving ahead

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.
...

[piker]

As events develop at GE this looks like a better and better deal for WABTEC and GETS and their employees . A take over by an experienced industry leader is the best possible thing for them. CAT/EMD is sort of drifting leaving GETS as the last real American freight locomotive builder it seems. The WABTECS seem to be a forward looking bunch and what appears to be pretty tight ship. They already make small switchers and just bought a streetcar outfit. Looks to me like they're stealing GETS and I'm guessing the GETSs would like to be stolen.
I read somewhere that the WABTECs would not retain the GE brand which as a railfan makes me sad. When this deal is fully done WABTEC will be a Fortune 500 company so you have to imagine there will be a branding effort. What about design changes? Cosmetic and engineering do you just keep doing what they were doing pre merger? I mean at least for the moment you just look in the door at GETS and tell them they're doing great and keep it up.
This will be interesting to follow.

[Allen Hazen]

Since this string is a historical record...
It now (November 2021) seems that the "rump" GE remaining after the spin-off of the locomotive business is going to vanish. From a 9 November 2021 article in the "New York Times":
"On Tuesday, the company said it would spin off its health care division in early 2023 and its energy businesses a year later. That would leave its aviation unit as its remaining business."
--
I'm not sure what all is included in "health care": I suppose X-ray machines were an obvious product back in the days when GE was primarily an electrical engineering company... "Energy businesses" I suppose would centre on the Power Systems division: GE makes wind-turbine equipment (the NYT had a photo of a lot full of wind-turbine machinery that had been made for a new wind farm in, I think, Holland), but the traditional, long-standing, GE activity here was building power plants: GE was one of the main U.S. companies building steam turbines. (Factoid: two of the Iowa-class battleships of the U.S. Navy had GE turbines, the other two having Westinghouse. Probably not a coincidence that these were two companies that built electric locomotives: railroad electrification was a major business for electrical engineering companies in the early 20th C.) And a business centered on steam power plants might seem a bit risky these days.
So the company that "invented" the diesel locomotive is going to reduce itself to a specialist jet engine builder. How are the mighty fallen!

[hrsn]

US Railroads led the way in falling from might. And, apparently, The thready remnant of the PRR sells insurance now:
https://www.bizjournals.com/cincinnati/ ... ainst.html

[kitchin]

GE Finance turned out to be a big moneymaker until it wasn't and took the company down. In 2008 GE closed most open credit lines and places like independent car dealers had to close up shop. It happened to a high-end Vespa dealer where I was living - they still had customers with cash, but no scooters.

Boeing's another example of short-term tactics and big salaries and fees. For products that take decades to develop.

[JayBee]

I would expect that GE Aviation systems would also retain the Marine Gas Turbine business since they are basically jet engines. All the US Navy Cruisers and Destroyers are powered by four of them, and the new 20 new Frigates will each have one of them. Plus all the foreign warships that use them.

[Allen Hazen]

JayBee-- I don't know for certain, but that certainly seems plausible. (Given the marine applications of the V225 (a.k.a. FDL) and V250 (a.k.a. GEVO) engines, and the historical production of steam turbines, GE had at least three units producing marine power... units whose descendants will go to three different companies.

[kitchin]

I sometimes go to a big trade show and academic conference that used to be dominated by GE. It had a gigantic booth right at the entrance. The last one I went to was three years ago and GE had about the smallest booth you could buy, in a back corner.

Its old place in the center was called "the GE hole." So yeah, trade shows were down somewhat in general and its competitors did not take the spot, but Siemens, etc., still had large booths.