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Nscalemike
06-01-2010, 08:42 PM
Progress Rail Services 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. Progress Rail is a wholly-owned subsidiary of Caterpillar Inc. (NYSE: CAT).

"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 profitable 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."

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.

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.

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.

troy12n
06-01-2010, 09:17 PM
Hopefully this does not mean they are gonna try to make CAT engines work in EMD locomotives. Every attempt at that so far has been less than stellar.

J
06-02-2010, 06:40 PM
EMD's current 710 engine is pretty competitive and has a good reputation. I have been told that it has a lot more room to grow and to accomodate pending EPA Tier 3 and Tier 4 standards than the GEVO.

Mgoldman
06-02-2010, 07:22 PM
I'm happy the company didn't go over seas. Imagine if China purchased it and then started importing half of the engines American companies use!

I wonder if the company will continued to be called EMD?

/Mitch

milwman
06-03-2010, 12:02 AM
I wonder if the company will continued to be called EMD?

/Mitch

Why not EMD of Cat

ottergoose
06-03-2010, 03:20 AM
For future reference, Progressive Rail and Progress Rail Services are not the same company :-)

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Chase55671
06-03-2010, 06:09 PM
Interesting, Nick! I would've imagine that Progress Rail Services was a part of CAT since all of the locomotives generally have a Caterpillar logo somewhere on the long hood. Interesting that we're referring to two separate companies.

Chase

ottergoose
06-03-2010, 07:13 PM
Interesting, Nick! I would've imagine that Progress Rail Services was a part of CAT since all of the locomotives generally have a Caterpillar logo somewhere on the long hood. Interesting that we're referring to two separate companies.

Progressive Rail is a shortline and rail logistics company based in Lakeville, MN. Their blue/white livery is based on MN&S. They operate several EMD's (SW1500's, SD39, SD38-2, GP15's).

Progress Rail Services is a subsidiary of Caterpillar based out of Albertville, AL. Their red equipment looks to be a nod to CB&Q. They now own EMD.

You can't forget Progressive Railroading either; they're an industry news website/magazine.

None of them are related to each other, as far as I know.

Freericks
06-03-2010, 07:41 PM
Progressive Rail is a shortline and rail logistics company based in Lakeville, MN. Their blue/white livery is based on MN&S. They operate several EMD's (SW1500's, SD39, SD38-2, GP15's).

Progress Rail Services is a subsidiary of Caterpillar based out of Albertville, AL. Their red equipment looks to be a nod to CB&Q. They now own EMD.

You can't forget Progressive Railroading either; they're an industry news website/magazine.

None of them are related to each other, as far as I know.

And Progresso is a soup.

Chase55671
06-03-2010, 09:04 PM
Progressive Rail is a shortline and rail logistics company based in Lakeville, MN. Their blue/white livery is based on MN&S. They operate several EMD's (SW1500's, SD39, SD38-2, GP15's).

Progress Rail Services is a subsidiary of Caterpillar based out of Albertville, AL. Their red equipment looks to be a nod to CB&Q. They now own EMD.

You can't forget Progressive Railroading either; they're an industry news website/magazine.

None of them are related to each other, as far as I know.

Interesting! Will be neat to watch the progression of EMD. I'd imagine if all goes as planned, it could be entirely possible to see someone competing with GE.

And Progresso is a soup.

Don't forget Progressive Car Insurance either!

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Chase

ottergoose
06-03-2010, 09:15 PM
Don't forget Progressive Car Insurance either!

Berkshire Hathaway owns BNSF, which owns EMD's, as well as GEICO, but not Progressive.

Freericks
06-03-2010, 09:28 PM
Berkshire Partners and Berkshire Hathaway are not the same company. I don't think that they have anything to do with each other (well, maybe the share in the soup).

Ween
06-03-2010, 10:31 PM
Charles is correct, at least as far as the Berkshire stuff goes.

ottergoose
06-04-2010, 01:32 AM
Berkshire is also a class of steam locomotive. Our first son, due in October, is going to be named Berk. Correlation between the two is purely coincidental.

JRMDC
06-04-2010, 02:42 AM
Berkshire is also a class of steam locomotive. Our first son, due in October, is going to be named Berk. Correlation between the two is purely coincidental.

Congrats for that good news!

Get him in a canoe and trackside ASAP, that is apparently how your family spends its time. :)

craftsmaster
07-01-2010, 03:30 PM
The business side caught me in the eye. Why PRR to EMD instead of having direct relation with CAT. Probably, it's a question of internal management. Who will be tasked after the purchase.