Caterpillar says it will acquire Progress Rail Services, an Albertville, Ala., provider of remanufactured locomotive and railcar products and services, for $1 billion in cash, stock and assumption of debt. Progress Rail is majority owned by One Equity Partners, a private equity affiliate of JP Morgan Chase & Company.
With 2005 sales of $1.2 billion, Progress Rail has one of the most extensive rail service and supply networks in North America. It operates more than 90 facilities in 29 states, Canada and Mexico, and has about 3,700 employees.
“This is an important acquisition due to its size and scope,” said Jim Owens, chairman and chief executive of Caterpillar. “The rail aftermarket services business is a strong fit with our strategic direction and will leverage our remanufacturing capability.”
Progress Rail offers reconditioned and remanufactured railcar components, rail and track products, railcar and locomotive repair, rail welding, maintenance and railcar dismantling.