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Global Railway lands deal to acquire locomotive engine refurbisher

Global Railway Industries Ltd. recently reached an agreement to acquire Canada Allied Diesel Co. Ltd.’s assets, including affiliates CAD Railway Services Inc. and Engine Systems Developments Centre.

Canada Allied Diesel supplies new and refurbished locomotive engines and parts; CAD Railway Services refurbishes locomotives and rail cars; and Engine System Development provides locomotive emission testing and engine diagnostic services.

Expected to close in September, the transaction calls for Global Railway — which currently owns Bach-Simpson Corp., G&B Specialties Inc. and Prime Railway Services — to purchase CAD’s assets for $22 million, including the acquisition of $12.6 million in net working capital.

The deal will double Global Railway’s annual revenue base to more than $65 million and expand the range of services the company offers to North American Class Is, said Global Railway Chairman, President and Chief Executive Officer Terry McManaman in a prepared statement.

Contact Progressive Railroading editorial staff.

More News from 7/31/2007