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.
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