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Yesterday, Wabtec Corp. announced it reached an agreement to acquire Rutgers Rail S.p.A.'s assets from Rutgers AG. Italy-based Rutgers Rail supplies brake shoes, disc pads and interior trim components to European freight and passenger railroads. The transaction is expected to close in the fourth quarter.

Wabtec officials believe Rutgers Rail will generate about $45 million in revenue next year and — along with existing subsidiary Cobra Europe — help the company become a leading European supplier of rail friction materials.

"Rutgers Rail … represents the type of acquisition we will continue to pursue: a business with strong market share in products that we know, a substantial portion of aftermarket sales to provide long-term stability, the opportunity for cross-selling and operational synergies [and] geographic expansion to offset the impact of the North American freight rail cycle," said Wabtec Chairman and Chief Executive Officer William Kassling in a prepared statement.

Wabtec supplies components for locomotives, freight cars and passenger transit vehicles, builds switcher and commuter locomotives, and provides aftermarket services.