WABTEC Corp is to sell a number of its railway business units to GE Transportation Systems for US$240m in cash. Subject to regulatory approval, the transaction is expected to close this month.
The sale includes Wabtec’s motor coil manufacturing, engine systems and distribution units, formerly part of Motive Power Industries until the merger in November 1999 that formed Wabtec. GE is also buying MPI de Mexico and Wabtec’s locomotive service contract businesses in California and Mexico. MPI business units producing heat exchangers, electronics, brake rigging and sanitation will remain with Wabtec, as will the Boise loco works in Idaho.