Wabtec Corporation

Last updated

Westinghouse Air Brake Technologies Corporation
Wabtec Corporation
Public
Traded as NYSE:  WAB
S&P 500 component [1]
IndustryRail industry
Founded1999 (1999) via merger
Headquarters
Pittsburgh, Pennsylvania [2]
,
U.S.
Number of locations
Various : US, Europe, Canada, Mexico, Australia, South America. ~50 plants [2]
Key people
  • Albert J. Neupaver​ (chairman) [3]
  • Rafael Santana (president​ and CEO)
  • Patrick D. Dugan (senior vice​ president and CFO) [4]
ProductsRail braking systems, locomotives, air condition and heat exchanging systems, other rolling stock components [2]
ServicesLocomotive servicing, overhaul and repair [2]
RevenueIncrease2.svg US$ 3,882 million (2017) [5]
Increase2.svg US$ 421.7 million (2017) [5]
Increase2.svg US$ 262.3 million (2017) [5]
Total assets Increase2.svg US$ 6,580 million (2017) [5]
Total equity Increase2.svg US$ 2,829 million (2017) [5]
Number of employees
18,000 [5]
Divisions
Website wabteccorp.com

Wabtec Corporation (derived from Westinghouse Air Brake Technologies Corporation) is an American company formed by the merger of the Westinghouse Air Brake Company (WABCO) and MotivePower Industries Corporation in 1999. [6] [7] It is headquartered in Pittsburgh, Pennsylvania.

Contents

Wabtec manufactures products for locomotives, freight cars and passenger transit vehicles, and builds new locomotives up to 4,000 horsepower (3 MW).

The company merged with GE Transportation on February 25, 2019.

History

The company's origins go back to 1869 with the foundation of the Westinghouse Brake Company. That company (also known as WA&B later as WABCO) became independent in 1990 via a management buy-out, and went public in 1995. [8] Another company, WABCO Vehicle Control Systems, also created from the Westinghouse Brake Company, is independent of Wabtec and was spun off by American Standard Companies (the ultimate owner) in 2007. [9]

The other company forming Wabtec, MotivePower Industries, can be traced back to 1972, [10] with the formation of the MK Rail division by the Morrison Knudsen group and the purchase of a manufacturing facility in Boise. In 1994 Morrison Knudsen created a subsidiary MK Rail Corporation; during the first half of the same decade the MK Rail group expanded with the acquisition of various other locomotive component companies. [11] In 1996, MK Rail group separated from the parent Morrison Knudsen and adopted the name MotivePower Industries Corporation. [12] In the later half of the 1990s further companies were acquired – again all in the locomotive components business. [13] MotivePower, a wholly owned subsidiary of Wabtec, continues to manufacture locomotives.

The corporate logo is supposed to represent an axial view of a mechanical brake valve, where different air ports line up between the 'stator' and 'rotor' depending upon the handle position.

Mergers and acquisitions

In March 2010, Wabtec announced that it had purchased Xorail, a railway signaling design and construction company for $40 million. [14] [15]

In July 2010, Wabtec announced the plan to purchase two manufacturers of rail equipment, Bach-Simpson Corp. and G&B Specialties. [16] The companies produce locomotive components and track products respectively. The acquisition of G&B Specialties was completed on July 28, 2010, for approximately $31.8 million. The acquisition of Bach-Simpson Corporation was completed on August 20, 2010 for approximately $12.0 million. [17]

In November 2010, Wabtec acquired all of the assets of Cleveland, Ohio-based manufacturer of traction motors and electric coils for rail and power generation markets Swiger Coil Systems for approximately $43.0 million. [18]

On June 14, 2012, Wabtec acquired Mors Smitt Holding for a purchase price of $88.4 million. [19]

On June 6, 2014, Wabtec acquired Fandstan Electric Group, a rail and industrial equipment manufacturer, for a purchase price of $199.4 million. [20]

On August 21, 2014, Wabtec acquired Dia-Frag, a manufacturer of friction products including motorcycle braking, for a purchase price of $70.6 million. [20]

On June 17, 2015, Wabtec acquired all three units of Metalocaucho (MTC, in Spain, China and India) who are leaders in the field of suspension and anti-vibration systems, for a purchase price of $23.4 million. [21]

On July 27, 2015, Wabtec announced that it plans to purchase 51% of Faiveley Transport's shares in a cash-and-stock deal valued at $1.8 billion, including debt. [22] [23] The deal closed on December 1, 2016, for a total of $1.7 billion. [24]

On October 12, 2015, Wabtec announced its acquisition of lineside sensor manufacturer Track IQ. [25]

On April 20, 2018, it was reported that General Electric (GE), undergoing a strategic review, was in talks to sell its century-old locomotive business, GE Transportation, to Wabtec, according to people familiar with the matter. [26]

On May 21, 2018, GE and Wabtec confirmed the merger of GE Transportation with Wabtec in an $11 billion deal, completed on February 25, 2019, that saw Wabtec shareholders take a 50.8% shareholding in the merged company, with GE shareholders owning 24.3% and GE itself 24.9%. [27] [28]

United Kingdom

Brush Traction

Wabtec bought Brush Traction of Loughborough, an English locomotive builder and maintainer, for US$31 million on 25 February 2011. [29]

Bearward Engineering

In November 2011, Wabtec acquired Bearward Engineering Ltd, an industrial radiator manufacturer employing some 300 people based in Northampton, England. Bearward Engineering mainly makes cooling systems for power generators. At the time of purchase Bearward had an annual sales of US$70 million. [30]

Wabtec Rail UK

Wabtec Rail Limited is a railway engineering company based in at the Doncaster Works in Doncaster, South Yorkshire, England. Services include the overhaul and repair of railway rolling stock and components. Wabtec Rail occupies part of the former British Rail Engineering Limited site known locally as the Plant Works. The two main unions on site (Unite and RMT) gave notice on November 3, 2014, of their intention to ballot their members for industrial action over a pay dispute, for the first time in Wabtec Rail Limited's history. [31]

Wabtec Rail Scotland

Wabtec Rail Scotland occupies the Kilmarnock works of the former locomotive builder Andrew Barclay Sons & Co.

LH Group Services

Wabtec announced the $48 million acquisition of diesel engine, transmission and bogie overhaul and industrial locomotive supplier LH Group on October 1, 2012. [32] Based at Barton under Needwood in Staffordshire, UK. LH has around 400 employees and annual sales of US$65m, about 10% of which are in non-rail markets.

See also

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References

  1. ↑ Chang, Sue (February 21, 2019). "Wabtec to replace Goodyear Tire on S&P 500 Feb. 27". MarketWatch. Retrieved March 23, 2019.
  2. 1 2 3 4 Wabtec corporation – fast facts wabtec.com
  3. ↑ Gough, Paul J. (May 10, 2017). "Neupaver named chairman of Wabtec". Pittsburgh Business Times. Retrieved June 30, 2017.
  4. ↑ "Corporate Management". Wabtec Corporation. Retrieved May 17, 2014.
  5. 1 2 3 4 5 6 "Wabtec Corporation, Form 10-K, Annual Report, Filing Date Feb 26, 2018". secdatabase.com. Retrieved May 10, 2018.
  6. ↑ "Westinghouse Air Brake Co, Form 8-K, Current Report, Filing Date Jun 3, 1999". secdatabase.com. Retrieved May 10, 2018.
  7. ↑ "Westinghouse Air Brake Co, Form 8-K, Current Report, Filing Date Nov 30, 1999". secdatabase.com. Retrieved May 10, 2018.
  8. ↑ "Wabtec Corp, Form 10-K, Annual Report, Filing Date Feb 26, 2018". secdatabase.com. Retrieved May 10, 2018.
  9. ↑ "American Standard Companies Inc, Form 8-K, Current Report, Filing Date Jul 12, 2007". secdatabase.com. Retrieved May 10, 2018.
  10. ↑ "MotivePower Industries, Inc, Form 10-K, Annual Report, Filing Date Mar 16, 1998". secdatabase.com. Retrieved May 10, 2018.
  11. ↑ "MK Rail Corporation, Form 8-K, Current Report, Filing Date Mar 2, 1994". secdatabase.com. Retrieved May 10, 2018.
  12. ↑ "MK Rail Corporation, Form 10-K, Annual Report, Filing Date Mar 13, 1997" (PDF). secdatabase.com. Retrieved May 10, 2018.
  13. ↑ MotivePower Wabtec – history motivepower-wabtec.com
  14. ↑ "Wabtec Corporation, Form 8-K, Current Report, Filing Date Apr 27, 2010". secdatabase.com. Retrieved May 10, 2018.
  15. ↑ http://www.railwaygazette.com/news/single-view/view/wabtec-buys-signalling-supplier-xorail.html
  16. ↑ "Wabtec Corporation, Form 8-K, Current Report, Filing Date Jul 27, 2010". secdatabase.com. Retrieved May 10, 2018.
  17. ↑ "Wabtec Corporation, Form 10-Q, Quarterly Report, Filing Date Nov 8, 2010". secdatabase.com. Retrieved May 10, 2018.
  18. ↑ "Wabtec Corporation, Form 10-K, Annual Report, Filing Date Feb 25, 2011". secdatabase.com. Retrieved May 10, 2018.
  19. ↑ "Wabtec Corporation, Form 10-Q, Quarterly Report, Filing Date Aug 2, 2012". secdatabase.com. Retrieved May 10, 2018.
  20. 1 2 "Wabtec Corporation, Form 10-K, Annual Report, Filing Date Feb 19, 2016". secdatabase.com. Retrieved May 10, 2018.
  21. ↑ "Wabtec Corporation, Form 10-Q, Quarterly Report, Filing Date Oct 29, 2015". secdatabase.com. Retrieved May 10, 2018.
  22. ↑ "Wabtec Corporation, Form 8-K, Current Report, Filing Date Jul 27, 2015" (PDF). secdatabase.com. Retrieved May 10, 2018.
  23. ↑ "Wabtec to buy Faiveley Transport for $1.8 billion, including debt". Reuters. July 27, 2015. Retrieved July 27, 2015.
  24. ↑ "Wabtec Corporation, Form 8-K, Current Report, Filing Date Dec 1, 2016". secdatabase.com. Retrieved May 10, 2018.
  25. ↑ "Wabtec acquires lineside sensor supplier Track IQ". railwaygazette.com. Retrieved July 12, 2018.
  26. ↑ "GE Is in Talks to Unload Rail Business in Deal With Wabtec". Bloomberg Business. April 20, 2018. Retrieved April 21, 2018.
  27. ↑ "GE to Merge Rail Division With Wabtec in $11 Billion Deal". Wall Street Journal. May 21, 2018. Retrieved May 21, 2018.
  28. ↑ Wabtec and GE Transportation complete merger Railway Gazette International February 25, 2019
  29. ↑ "Wabtec Corporation, Form 10-Q, Quarterly Report, Filing Date May 9, 2011". secdatabase.com. Retrieved May 10, 2018.
  30. ↑ "Wabtec Corporation, Form 8-K, Current Report, Filing Date Nov 4, 2011". secdatabase.com. Retrieved May 10, 2018.
  31. ↑ "Wabtec Rail UK". Wabtecrail.co.uk. Retrieved March 25, 2014.
  32. ↑ "Wabtec Corporation, Form 10-Q, Quarterly Report, Filing Date Nov 2, 2012". secdatabase.com. Retrieved May 10, 2018.
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