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

[D40LF]

at least not Chinese buyer ....
https://www.progressiverailroading.com/ ... tec--54494" onclick="window.open(this.href);return false;

I wonder if they considered it. CRRC has been relying on foreign engine suppliers like MTU and CAT engines for their locomotives. Acquiring a western rolling stock manufacturer with a decent reputation would certainly benefit their global business in some ways. The market for new locomotives in the US seems to be shrinking though, and I'm not sure how a Chinese takeover would improve GE's North American sales.

[Ronal U18C Indonesia]

For Indonesia market, it's okay in once upon time the IR(Indonesia Railways) Ll Co buy from CRRC Ll Co, you see use MTU and CAT brand engine, because this brand, it's waterresisstant you know what's the Indonesia climate how? but, the accleration sound both melodious like GE FDL series engine

[Ronal U18C Indonesia]

Moreover the Cummins brand, when raising the throttle notch the sound like F1 race car, bruuuuuuuuuuummmmm… bruuuummm, bruuuuuuuummmm…

[Ira]

Can anyone tell me when this transpired? General Electric Company (NYSE: GE), through its GE Transportation subsidiary, sold its Transit Railcar Propulsion Components System Parts and Accessories Products business to Westinghouse Air Brake Technologies Corporation, doing business as Wabtec Corporation (NYSE: WAB). Terms of the transaction were not disclosed.

[GEVO]

They sold that part of the business back in 2011. Nothing new on the current situation other than they are saying we will know in the July time frame what is going to happen.

Wabtec Acquires $15 Million Transit Aftermarket Parts Business From GE Transportation

WILMERDING, PA, June 30, 2011 –Wabtec Corporation (NYSE: WAB) has acquired a transit aftermarket parts business from GE Transportation. With annual sales of about $15 million, the business provides parts for propulsion and control systems for the passenger transit car aftermarket in North America. Wabtec expects the transaction to be accretive in the first year.

[GEVO]

Looks like we may find out GE Transportation's fate as early as this week.

Exclusive: GE nears deal to merge transportation unit with Wabtec - sources(Reuters) - General Electric Co (GE.N) is nearing a deal to merge its transportation business, which manufactures train engines, with Wabtec Corp (WAB.N), a U.S. maker of equipment for the rail industry, two people familiar with the matter said on Sunday.

A deal valuing the combined business at more than $20 billion could be announced as early as this week, the sources said, asking not to be identified because the negotiations are confidential.

[NorthWest]

Wabtec it is: http://www.getransportation.com/wabtec- ... d-software

[Jeff Smith]

The Icon, much like Icons past such as Budd, has gone away: Investors.com

This forum will remain for GE rail prior to sale.

GE Will Offload One Of Its Oldest Businesses In New CEO's Biggest Deal

General Electric (GE) will merge one of its oldest businesses with Wabtec (WAB) in an $11.1 billion deal as the industrial giant accelerates plans to put itself back on the rails.

The agreement to unload the century-old GE Transportation unit, jointly announced by GE and Pennsylvania-based Wabtec Monday, is the biggest yet under CEO John Flannery.
...
GE will receive $2.9 billion in cash at the deal's closing, expected in Q1 2019. GE and its shareholders will own 50.1% of the combined company, while Wabtec shareholders will retain the rest. The combined company, with roughly $8 billion in revenue, "will make Wabtec a Fortune 500, global transportation leader in rail equipment, software and services, with operations in more than 50 countries," according to a joint statement.
...
Locomotives: 'Extreme Cyclicality'
General Electric is one of the world's biggest makers of locomotives. But the "extreme cyclicality and uneven order flow" of the business has hurt both GE Transportation and Wabtec (formerly Westinghouse Air Brake Technologies), CFRA analyst Jim Corridore wrote Monday. He expects conditions to improve over the next two years as the industry comes off a trough in demand in 2017.
...
Wabtec's Raymond Betler will remain president and CEO of the merged company. GE Transportation chief Rafael Santana will run Wabtec's freight segment.

[Jeff Smith]

ADMIN NOTE: Once the merger is complete, I will create a WABTEC forum. For now, I've "globalized" the topic. So if you see it in your favorite forum at the topic, it's not really in that topic, it's just "headlined". After a short period of time, I'll "sticky" it instead.

[Ira]

What will happen with the pensions from the employees that have been laid off?

[mtuandrew]

General Electric and Westinghouse - who would have thought.

Hey, maybe they’ll develop the HSP-46 more?

[R36 Combine Coach]

General Electric and Westinghouse - who would have thought.

WABCO/WABTEC here. The Westinghouse Electric Corp. Transportation Division in Pittsburgh did electric and traction equipment for locomotives (building Baldwin-Westinghouse diesels, Westinghouse electrics and F-M electrical and running gear) and rail transit and passenger rail, this division sold to AEG 1988, then AdTranz and now Bombardier's Pittsburgh facility.

WABCO (WABTEC) and Westinghouse Electric were two separated companies, the latter sold off its electrical, engineering/technical and industrial divisions and renamed CBS after purchasing the TV/radio network.

[es80ac]

I feel this news is as good as it will be for GETS and its employees and probably the railroads. GE is not selling all of GETS outright, and a rail focused company is purchasing the other half instead of some shark infested fund in the case of EMD sale. It is likely the new company will keep focused on competing in the locomotive market instead of dressing it up for another resale.

[Gilbert B Norman]

Journal

Fair Use:

..GE examined an initial public offering for its transportation division, which has struggled with falling profit and sales in recent years. It declined selling to private-equity firms for cash, people familiar with the matter said, and hopes the Wabtec deal will allow the business to benefit from expected growth.

GE will receive $2.9 billion in cash at closing. GE shareholders will own 40.2% of the combined company, with GE owning about 9.9% after the deal, the companies said Monday. GE is required to sell its stake in the combined company within three years.

Wabtec shareholders will retain 49.9% of the combined company. Mr. Betler will serve as CEO after the deal, which is expected to close in early 2019.

Rather than a straight sale, the deal was structured in a way that would leave GE shareholders with a stake in a public company and avoid a big tax bill. It gives GE shareholders a chance to participate in the turnaround of the struggling transportation business or cash out if they wish.

Times

Fair Use:

...John Flannery took a step on Monday toward his goal of making General Electric a “simpler, leaner” company by spinning off its railroad business in a deal valued at roughly $11 billion.

It is the first move to shed an entire business since Mr. Flannery became chief executive last August, vowing to streamline the struggling industrial conglomerate and improve its financial performance.

G.E.’s railway business will be combined with the Wabtec Corporation, formerly known as the Westinghouse Air Brake Technologies Corporation. Wabtec, based in Wilmerding, Pa., makes equipment for mass-transit and freight railways.

Can't promise with either the "paywall police" are off duty.

[Gilbert B Norman]

General Electric and Westinghouse - who would have thought.

Evidently, the Pennsylvania Railroad; lest we forget, of the 61 Metroliner MU's, half had GE running gear, the rest had Westinghouse.