7am News, Sports and Obits

Latest WGIL news
Click to play or
Right click and "Save Target As" to download
Click for Galesburg, Illinois Forecast
Home - Cancellations - Community Events - Contact Us - Mornings - News - Obituaries - Pictures - Programs - Special Events Audio - Sports - Weather
Caterpillar Buys Locomotive Maker
PEORIA, Ill. (AP) -- Heavy equipment maker Caterpillar Inc. says its railroad service unit will spend $820 million cash to acquire locomotive maker Electro-Motive Diesel.

Caterpillar says that its Progress Rail Services division has agreed to buy EMD from private equity firms Berkshire Partners and Greenbriar Equity Group.

Caterpillar Vice Chairman Doug Oberhelman says this deal will help his Peoria, Ill.-based company increase its presence in the railroad industry, which has a bright future because it can efficiently move lots of freight.

In 2009, EMD generated $1.8 billion revenue on sales of diesel-electric locomotives.

The deal is expected to close by year-end. EMD will keep its CEO and remain in LaGrange, Ill.

(Copyright 2010 by The Associated Press. All Rights Reserved.)
06 01 10 by Newsroom
News management powered by Xpression News

Click here for the WGIL News Archive

Click here for national news

The following provision applies to all visitors (which shall include persons and representatives of legal entities, whether such representatives are persons or digital engines of a kind that crawls, indexes, scrapes, copies, stores or transmits digital content). By accessing this Web site or digital service, you specifically acknowledge and agree that: (i) Associated Press text, photo, graphic, audio and/or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium; (ii) No Associated Press materials nor any portion thereof may be stored in a computer except for personal and non-commercial use; (iii) The Associated Press will not be held liable for any delays, inaccuracies, errors or omissions therefrom or in the transmission or delivery of all or any part thereof or for any damages arising from any of the foregoing; (iv) The Associated Press is an intended third party beneficiary of these terms and conditions and it may exercise all rights and remedies available to it; and (v) The Associated Press reserves the right to audit possible unauthorized commercial use of AP materials or any portion thereof at any time.