USA: Faiveley Transport has agreed to acquire a controlling interest in compressed air drying technology and brake component manufacturer Graham-White.

The US firm employs 300 people at six locations, with a central manufacturing site in Salem, Virginia. It is expecting to record sales of $70m in 2011, with 90% in the US domestic market and a large share of revenue coming from after-market and re-manufacturing activities.

The transaction was announced on January 12 and is expected to close in the first quarter of 2012. It will be funded through existing credit lines and an issue of new shares to the sellers worth $15m or 1·7% of capital.

'Graham-White will reinforce our commitment to North American original equipment manufacturers and rail operators, which is fully in line with our strategic focus on the USA', said Faiveley Transport CEO Thierry Barel. 'The companies have similar cultures, and have already worked together successfully in the past, which will help to make it a very compelling combination'.