Wabtec €1.6 billion acquisition of a 51% stake in Faiveley Transports

Overview:

• Wabtec, a US based train part manufacturer, completed the acquisition of a 51% stake in French rival Faiveley Transport for around €1.6 billion. 
• The acquisition was made in cash and stock, including assumed debt. 
• The company purchased the stake of the Faiveley family, who become shareholders in Wabtec. 
• Wabtec paid 25% in cash for a value of €100 per share, and 75% in exchange for Wabtec preference shares on the basis of 1.125 share per Faiveley Transport share. 
• Wabtec is to launch a tender offer for the remaining public shres in the company in December 2016.
• The deal creates one of the world's largest equipment suppliers in the railway sector. 

John Crabb - Journalist