WILMERDING, Pa. (AP) -- Wabtec Corp., which supplies goods and services to railroads, said Monday it completed the purchase of Standard Car Truck for about $300 million in cash.
Standard Car Truck makes components for locomotives and freight cars including springs, friction wedges and wear plates.
Wabtec said it expects the deal -- which was first announced in September -- to boost its earnings in the first year. However, the company noted the increase will be reduced significantly by the recognition of non-cash, purchase price accounting charges.
Chief Executive Albert J. Neupaver said the acquisition will broaden Wabtec's offering of rail truck components and assemblies.
Wabtec financed the deal with proceeds from a new, $500 million credit facility, including a $200 million term loan and a $300 million revolving line of credit. Wabtec said it has about $120 million of cash and about $385 million of debt, including $150 million of bonds, after the purchase.
Standard Car Truck, based in Park Ridge, Ill., expects to have annual sales of about $225 million this year. Standard has about 550 employees and nine manufacturing plants in Illinois, Ohio and Pennsylvania. It also has offices in Malaysia for low-cost sourcing from other manufacturers, and a research and product development operation in Scotland.
Wabtec shares rose $4.07, or 11.2 percent, to $40.51 in morning trading.