General Electric confirmed it is merging its GE Transportation locomotive business with Wabtec, valuing the transaction at $11.1 billion.
Wabtec makes a range of parts and control systems for trains, with the company based in Wilmerding, Pa. about 150 miles south of Erie where GE Transportation has its historic locomotive manufacturing operations.
GE will retain a 50.1 percent stake in the combined entity, with the Boston-based company to receive a $2.9 billion cash payment in the deal.
The combined company will have about $8 billion in annual revenue, with GE Transportation's backlog of orders numbering 1,800 locomotives at present. GE Transportation employs about 9,000 people and Wabtec 18,000 people.
At GE's annual meeting last month outside Pittsburgh, several employees and retirees had criticized CEO John Flannery for the company's stewardship of GE Transportation.
"We built the company -- we put it where it is today," said Ron Flowers, president of a GE retirees association. "I understand there was some bad decisions, but they weren't on locomotives. We're still No. 1 in the world."