Wabtec Corporation has signed a definitive share purchase agreement to acquire from members of the Faiveley family an approximate 51 percent share of Faiveley Transport S.A., a provider of integrated systems and services for the rail industry with annual sales of approximately $1.2 billion. The combination of Wabtec and Faiveley Transport will create one of the world’s largest public rail equipment companies, with revenues of approximately $4.5 billion.
Under the share purchase agreement, Wabtec plans to purchase the shares for €100 per share, payable 25 percent in cash and 75 percent in Wabtec preferred stock, mandatorily convertible after three years into a total of approximately 6.5 million Wabtec common shares. Wabtec will commence a tender offer for the remaining publicly traded Faiveley Transport shares upon completing the share purchase.
Wabtec announced that it had made an irrevocable offer to acquire these shares on July 27 of this year. Required labor consultations have been completed by Faiveley Transport, with the majority shareholders accepting the Wabtec purchase offer. Wabtec has also entered into a definitive tender offer agreement with Faiveley Transport and a definitive shareholders agreement with the majority shareholders of Faiveley Transport. Closing of these transactions is subject to various conditions, including completion of remaining regulatory requirements.
Wabtec Corporation is a global provider of technology-based products and services for freight rail, passenger transit and other industrial segments with annual sales of approximately $3.3 billion.