Wabtec Corp., a global rail and transit industry supplier completed the acquisition of rail equipment supplier Standard Car Truck for a cash amount of approximately $300 million.
Based in Park Ridge, Ill., Standard Car Truck, which expects to have annual sales of about $225 million in 2008, manufactures engineered components for locomotives and freight cars.
Wabtec expects the transaction to be accretive in the first year, although the recognition of non-cash, purchase price accounting charges will reduce that impact significantly.
The company financed the transaction with proceeds from a new, $500 million credit facility, which consists of a $200 million term loan and a $300 million revolving line of credit. After completing the acquisition, Wabtec has about $120 million of cash and about $385 million of debt, including $150 million of bonds, on its balance sheet.
Founded in 1896, Standard Car Truck is a leader in stabilization systems for freight cars, including engineered truck (undercarriage) components such as springs, friction wedges and wear plates.