Quote:Reuters
Caterpillar Inc (CAT.N) agreed to buy a U.S. maker of railroad locomotives on Tuesday for $820 million in cash, expanding its rail business from service into engine manufacturing.
Deals
The world's largest maker of heavy equipment said it was buying Electro-Motive Diesel, which last year generated $1.8 billion in revenue, from private equity firms Berkshire Partners LLC and Greenbriar Equity Group LLC.
EMD, which General Motors GM.UL spun-off in 2005, will be part of Caterpillar's Progress Rail operation and will compete more directly with General Electric Co (GE.N), another major U.S. maker of locomotives.
The acquisition, the latest in a string of rail-related deals for Peoria, Illinois-based Caterpillar, is expected to close by the year's end.
[
www.reuters.com]
FYI, "Berkshire Partners LLC " is
not related to Berkshire Hathaway (Warren Buffet).