Wabtec Files Proxy

Shares of Wabtec (WAB) have regained some lost ground this morning. The shares are up about 5% so far.

The company filed a proxy related to the GE deal.

Wabtec Corp. on Monday filed an amended proxy statement with the U.S. Securities and Exchange Commission regarding its merger with GE Transportation, which is expected to close in the first quarter.

Wabtec (NYSE:WAB) said a “minor adjustment” was made to harmonize GE Transportation’s historical financial information with Wabtec’s revenue recognition accounting policies for the purpose of the preparation of required pro forma financial statements. This is expected to result in a $63 million decrease in forecasted combined consolidated net revenue and EBIT in 2019, with no material effect in future years.

Also, non-cash amortization expense from purchase price accounting will impact the results of operations, according to the filing.

The deal was announced in May.

Wabtec provided the following statement: “The company continues to make progress in its planned merger with GE Transportation, including today the successful execution and settlement of $500 million of three-year floating rate notes and $2 billion of 5-year and 10-year senior notes to fund a majority of the cash requirements for the transaction. Wabtec expects the transaction to be completed by early 2019. The company affirms the material financial aspects of the transaction announced in May, including GE Transportation’s estimated adjusted EBITDA growing to between $900 million and $1 billion in 2019. Upon completion of the merger, we believe we will be poised to drive strong growth in 2019 and beyond and well-positioned to serve customers as industry demand continues to improve.”

Bear in mind that $63 million is out of a company that should do more than $4 billion in revenue this year. And that’s just Wabtec, not the combined companies.

Posted by on September 17th, 2018 at 10:45 am


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