Caterpillar to Acquire Rail Aftermarket Services Co.

Posted on May 16, 2006

Caterpillar Inc. said it has reached an agreement to acquire Progress Rail Services, Inc. for $1.0 billion in cash, stock and assumption of debt. Progress Rail, Albertville, Ala. is a provider of remanufactured locomotive and railcar products and services to the North American railroad industry. With 2005 sales of $1.2 billion, the company operates more than 90 facilities in 29 states in the United States, Canada and Mexico, with about 3700 employees.

Progress Rail offers a range of reconditioned and remanufactured railcar components, rail and track products, railcar and locomotive repair, rail welding, maintenance of way equipment and railcar dismantling.