Progress Rail Services Finalizes Electro-Motive Diesel Acquisition
ALBERTVILLE, Ala., Aug. 2 /PRNewswire-FirstCall/ -- Progress Rail Services announced today it has finalized the purchase of Electro-Motive Diesel (EMD) for $820 million in cash, plus a net working capital adjustment subject to post-closing finalization, which is currently estimated at approximately $108 million, from Berkshire Partners LLC and Greenbriar Equity Group LLC. Effective with the closing of the acquisition, EMD is now a wholly-owned subsidiary of Progress Rail. Progress Rail is a wholly-owned subsidiary of Caterpillar Inc. (NYSE: CAT).
"The acquisition of EMD is a natural fit as it supports our enterprise strategy to aggressively grow our Energy Power Systems business, of which the rail industry is an important component," said Caterpillar Vice Chairman and CEO Doug Oberhelman. "Both EMD and Progress Rail will continue to produce innovative solutions to establish leadership positions in the United States and abroad," continued Oberhelman.
Progress Rail Services is one of the largest providers of rail and transit products and services in North America, including: locomotive upgrade and repair, railcar remanufacturing, trackwork, rail welding, rail repair and replacement, signal design and installation, maintenance of way equipment, parts reclamation and recycling.
"This acquisition further strengthens Progress Rail's unmatched portfolio of products and component support of our rail-related services and solutions," said Progress Rail CEO Billy Ainsworth. "Together with Caterpillar and EMD's engine solutions, our comprehensive offerings can power trains that will deliver sustainable and clean transportation for the public and our customers for years to come," continued Ainsworth.
With 2009 revenues of $1.8 billion, EMD has the largest installed base of diesel-electric locomotives in the world and offers the most extensive range of locomotive products in the rail and transit industry.
EMD will remain headquartered in LaGrange, Ill. John Hamilton will continue as president and CEO of EMD and will report to Billy Ainsworth.
About Progress Rail:
Progress Rail Services, a wholly-owned subsidiary of Caterpillar Inc., is a leading supplier of remanufactured locomotive and railcar products and services to the railroad industry, operating one of the most extensive rail service and supply networks in North America. We serve our customers through a network of more than 125 locations across the United States, Canada, Mexico, Brazil, Italy, Germany and the United Kingdom, with more than 4,300 employees. Progress Rail Services is headquartered in Albertville, Ala. For more information, visit www.progressrail.com.
About Electro-Motive Diesel, Inc.:
Founded in 1922, Electro-Motive (EMD) is one of two U.S. original equipment manufacturers of diesel-electric locomotives. Headquartered in LaGrange, Ill., with additional facilities in London, Ontario, and San Luis Potosi, Mexico. EMD designs, manufactures and sells diesel-electric locomotives for all commercial railroad applications and has sold its products in more than 70 countries worldwide. The company is the only diesel-electric locomotive manufacturer to have produced more than 70,000 engines and has the largest installed base in both North America and worldwide. In addition to its manufacturing activities, EMD has an extensive aftermarket business offering customers replacement parts, maintenance solutions, and a range of value-added services. The company is also a global provider of diesel engines for marine propulsion, offshore and land-based oil well drilling rigs, and stationary power generation. Additional information can be found at: www.EMDiesels.com.
About Caterpillar:
For more than 85 years, Caterpillar Inc. has been making progress possible and driving positive and sustainable change on every continent. With 2009 sales and revenues of $32.396 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services. More information is available at: www.cat.com.
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SOURCE Caterpillar Inc.
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