Caterpillar (NYSE:CAT) Acquires "Electro-Motive Diesel"

Caterpillar (NYSE:CAT) has confirmed it has come to an agreement to acquire Electro-Motive Diesel from private equity firms Berkshire Partners LLC and Greenbriar Equity Group LLC, enlarging its holdings in railroad sector.

Over the last several years, Caterpillar has spent close to $2 billion in this particular segment.

The spin-off from General Motors will operate in the Progress Rail operation of Caterpillar, and go more head-to-head with General Electric (NYSE:GE).

In 2009 Electro-Motive Diesel generated $1.8 billion in revenue.

Terms of the deal were $820 million in cash.