Wow! some big news for you tug boat types, and rail fans. Iconic railroad and engine maker, EMD, has been, yet again, sold, this time though, its not just another “bankster” looking to split the company into easy cash. This time, another industrial icon, Caterpillar of the US, is absorbing EMD to increase their rail portfolio. Nice to see. Here is a news story, the official CAT press release is here. Below is a quick blurb hitting the internets.
Caterpillar Acquires Electro-Motive Diesel
Marking a significant expansion of its Progress Rail Services subsidiary, Caterpillar has signed a definitive agreement to purchase Electro-Motive Diesel (EMD) for $820 million in cash from Berkshire Partners LLC and Greenbriar Equity Group LLC. Upon completion of the transaction, EMD will become a wholly-owned subsidiary of Progress Rail.
The acquisition is expected to close by the end of 2010, pending final regulatory approvals. EMD will remain headquartered in LaGrange, Ill. John Hamilton will continue as president and CEO of EMD and will report to Billy Ainsworth, Progress Rail CEO. With 2009 revenues of $1.8 billion, Cat said EMD has the largest installed base of diesel-electric locomotives in the world.
Progress Rail Services is a provider of rail and transit products and services 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.
“The acquisition of EMD will enable us to provide rail and transit customers an industry-leading range of locomotive, engine and emissions solutions, as well as unmatched aftermarket product and parts support and a full line of rail-related services and solutions,” said Billy Ainsworth. “This acquisition represents the latest step in our strategic plan to aggressively grow our presence in the global rail industry,” said Caterpillar vice chairman and CEO-elect Doug Oberhelman. “Including today’s announcement and our acquisition of Progress Rail, Caterpillar has invested about $2 billion since 2006 to grow our rail and transit businesses. Rail has proven to be a highly efficient and sustainable method for moving freight and people, and we see a positive long-term future for the continued growth of the rail industry.”
For more information: www.progressrail.com