Wabtec acquires majority ownership of Faiveley Transport
Wabtec has acquired majority ownership of Faiveley Transport S.A., after completing the purchase of the Faiveley family's stake, which represented about 51% of the company's shares outstanding. Wabtec plans to launch a tender offer for the remaining public shares in December. Faiveley Transport is a leading global provider of value-added, integrated systems and services for the railway industry with annual sales of about $1.2B. Wabtec acquired the family stake for about $212M in cash and 6.3M shares of Wabtec common stock. Through the tender offer, the public shareholders of Faiveley Transport will have the option to elect to receive EUR 100.00 per share of Faiveley Transport in cash or 1.1538 Wabtec common shares per share of Faiveley Transport. The total purchase price for 100% of the shares of Faiveley Transport is about $1.7B, including assumed debt and net of cash acquired. The $1.2B cash portion of the transaction will be funded from about $325M of cash on hand, the net proceeds from a recent $750M senior notes offering and the company's existing revolving credit facility and term note.