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Rail News: Rail Industry Trends

Progress Rail caps off EMD purchase; First Union Rail buys 2,370 cars


Yesterday, Progress Rail Services announced it finalized the purchase of Electro-Motive Diesel Inc. (EMD) for $820 million in cash, plus a net working capital adjustment currently estimated at $108 million, from Berkshire Partners L.L.C. and Greenbriar Equity Group L.L.C.

EMD is now a wholly owned subsidiary of Progress Rail, which is a wholly owned subsidiary of Caterpillar Inc. Progress Rail Services provides various rail and transit products and services in North America, including locomotive upgrades and repairs; rail-car remanufacturing; trackwork; rail welding, repair and replacement; signal design and installation; and maintenance-of-way equipment.

‘This acquisition further strengthens Progress Rail's unmatched portfolio of products and component support of our rail-related services and solutions," said Progress Rail Chief Executive Officer Billy Ainsworth in a prepared statement.

EMD will remain headquartered in LaGrange, Ill., and John Hamilton will continue to serve as the locomotive builder’s president and CEO. He will report to Ainsworth.

Meanwhile, First Union Rail today announced a large acquisition of its own: 2,370 rail cars valued at more than $100 million. The purchase includes mill gondolas, flat cars, coal gondolas, hoppers and various other cars.

“Continuing to build and diversify our fleet will help us grow our position in the industry by delivering the best equipment and service," said Jack Thomas, who heads First Union Rail, a rail-car lessor that operates a fleet exceeding 90,000 cars.

Contact Progressive Railroading editorial staff.

More News from 8/3/2010