SALT LAKE CITY — Swiss rail giant Stadler Rail entered the public stock market in its home country Friday with a $3.8 billion valuation and an opening share price of $38.
The company has a growing Utah presence, under its affiliate Stadler U.S., with plans in place to build a new manufacturing facility on Salt Lake City's west side located within the state's new inland port development.
While a $9.6 million tax incentive from Salt Lake City was in limbo amid a running squabble between city leaders and state legislators about the inland port effort, the issue was settled under legislation passed in the recent session, via HB433, that grandfathered the deal in.
The new manufacturing complex is projected to occupy 250,000 square feet by the end of 2019 and more than 900,000 square feet by the end of 2029, as well as grow from employing about 150 to about 1,000 over the next 10 years. Stadler operates an existing Salt Lake plant, which is expected to be retired and employees shifted to the new facility when completed.4 comments on this story
Reuters reported Stadler Chairman Peter Spuhler, who has run the company for over 30 years and turned Stadler "into a global player from a relatively small family-owned business," sold 35 million shares in his control worth 1.3 billion francs at the offer price.
In 2015, Stadler earned a $10.1 million, post-performance tax incentive package from the Governor's Office of Economic Development. The potential rebates, payable over 15 years, were based on the company's estimates that it would pay out some $576 million in wages over the life of the agreement while remitting $40.3 million in corporate, payroll and state sales tax over the same period.