Station naming deals announced
Runaway Rail Car Kicked Loose by Teen Hits New York Station
Škoda unveils its second tram for the Chinese market
Wabtec to buy Faiveley Transport for US$1·8bn
Constantine tram extension contract
Channel Tunnel: '2,000 migrants' tried to enter
Ottawa urban rail gets federal funding
UK and Italian operators order Vossloh locomotives
First Great Western and Eversholt sign Hitachi AT300 train contract
Tanzania, Rwanda and Burundi invite interest in DIKKM railway
FRANCE: On July 27 Wabtec Corp announced plans to acquire Faiveley Transport in a deal which would ‘create one of the world’s largest public rail equipment companies’, with revenues of US$4·5bn and a presence in ‘all key freight rail and passenger transit geographies worldwide.’
Shareholders owning 51% of Faiveley Transport have entered into exclusive discussions regarding Wabtec’s irrevocable offer of €100/share, payable 25% in cash and 75% in Wabtec preferred stock which must be converted into common shares after three years. Wabtec expects that these shareholders will enter into a definitive agreement once regulatory staff consultation is completed.
On completion, Wabtec would make a tender offer for the remaining publicly-traded shares, paying €100 per share or Wabtec preferred stock. Faiveley Transport would then be delisted from Euronext if minority interests represent less than 5%.
The total purchase price is about US$1·8bn, including assumed debt. Wabtec plans to fund the cash portion with cash on hand, existing credit facilities and potentially other debt financing.
Faiveley Transport’s headquarters at Gennevilliers in Paris would become Wabtec’s global transit headquarters under the Faiveley Transport brand, with Faiveley Transport management board Chairman & CEO Stéphane Rambaud-Measson joining Wabtec as President & CEO of the Faiveley Transport group and Wabtec Executive Vice-President.
‘The combination of our operations with Wabtec would be an excellent strategic move for Faiveley Transport’, said Stéphane Rambaud-Measson. ‘Our complementarity is remarkable, both in terms of product portfolios and geographies. This transaction would enable us to pursue our ambition to become a global leader in railway equipment and services for the passenger transit market. Faiveley Transport would double in size with the contribution of Wabtec’s transit division thus enlarging the French industrial footprint of the group.’
Wabtec’s Executive Chairman Albert J Neupaver said Faiveley Transport ‘is an excellent strategic fit, expanding our geographic presence considerably, broadening our product and service capabilities, and enhancing our technology and innovation initiatives, all of which will make us a more efficient global competitor’.
This article first appeared on www.railwaygazette.com
About this website
Railpage version 3.10.0.0037
All logos and trademarks in this site are property of their respective owner. The comments are property of their posters, all the rest is © 2003-2017 Interactive Omnimedia Pty Ltd.
You can syndicate our news using one of the RSS feeds.