Wabtec Corp , a U.S. railcar parts and braking equipment maker, said it will acquire two units of Global Railway Industries Ltd for about $45 million in cash.
The company expects the acquisition of G&B Specialties Inc and Bach-Simpson Corp, which have a combined revenue of $30 million, to add to its earnings in the first year.
G&B Specialties makes railroad track and signaling products and Bach-Simpson designs and builds electronic instrumentation devices for rail and transit markets.
Wabtec said the G&B Specialties transaction is expected to close by July 31 while the Bach-Simpson deal is expected to close by Oct. 31.
Separately, Global said it expects to receive about C$25 million on close of the sale and would use the proceeds to retire the company’s term and operating loans.
The company said it has been in default under its credit facilities since the fourth quarter of 2008 and will continue its strategic review of alternatives. (Reuters)