WILMERDING, Pa. (AP) -- Railroad equipment supplier Wabtec Corp. said Monday it bought Xorail LLC, which designs and builds railroad signals, for $40 million in cash.
Wabtec expects the transaction to be boost earnings within a year. Xorail is based in Jacksonville, Fla., and has about 275 employees. It has annual sales of about $40 million.
Xorail was founded in 1990 as Southwest Signal Engineering Company, and now has 10 satellite offices throughout North America. Kash Krishnarao, president of Xorail, will remain with the company.
Wabtec shares fell 11 cents in afternoon trading to $42.29.