WILMERDING, Pa., Dec. 01, 2016 (GLOBE NEWSWIRE) -- Wabtec Corporation (NYSE:WAB) has acquired majority ownership of Faiveley Transport S.A. (Euronext Paris:LEY), after completing the purchase of the Faiveley family's stake, which represented about 51% of the company's shares outstanding. Wabtec plans to launch a tender offer for the remaining public shares in December. Faiveley Transport is a leading global provider of value-added, integrated systems and services for the railway industry with annual sales of about $1.2 billion. Albert J. Neupaver, executive chairman of Wabtec, said: "The acquisition of Faiveley Transport is an excellent strategic fit, expanding our geographic presence, broadening our product and service capabilities, and strengthening our technology and innovation initiatives. The combination of two rail industry leaders creates compelling growth opportunities and synergies, and strengthens the diversity of our revenue base. We're pleased to welcome the Faiveley family as long-term Wabtec shareholders with representation on our Board of Directors." Wabtec acquired the family stake for about $212 million in cash and 6.3 million shares of Wabtec common stock. Through the tender offer, the public shareholders of Faiveley Transport will have the option to elect to receive €100 per share of Faiveley Transport in cash or 1.1538 Wabtec common shares per share of Faiveley Transport. The total purchase price for 100% of the shares of Faiveley Transport is about $1.7 billion, including assumed debt and net of cash acquired. The $1.2 billion cash portion of the transaction will be funded from about $325 million of cash on hand, the net proceeds from a recent $750 million senior notes offering and the company's existing revolving credit facility and term note. The strategic combination of Wabtec and Faiveley Transport creates one of the world's leading rail equipment companies, with revenues of about $4.2 billion and a presence in all key transit and freight rail regions worldwide. Wabtec now expects to realize at least $50 million in annual pre-tax synergies from the combination by year three, and the transaction will be accretive to Wabtec's earnings per diluted share in 2017.