Wabtec Merges with GE Transportation

May 21, 2018

Cleary Gottlieb is representing Goldman Sachs as financial advisor to Westinghouse Air Brake Technologies Corporation (Wabtec), a global leader in rail equipment, services and software, in Wabtec’s combination with GE Transportation, a unit of General Electric Company (GE).

The transaction was announced on May 21, 2018, and will create a global transportation leader in rail equipment, services, and software, with operations in more than 50 countries.

Under the terms of the agreement, GE will receive $2.9 billion in cash at closing and GE and its shareholders will receive a 50.1 percent ownership interest in the combined company, with Wabtec shareholders retaining 49.9 percent of the combined company. The transaction is expected to be tax free to the companies’ respective shareholders.

The transaction was approved by the board of directors of both companies and is expected to close in early 2019.