Progress Rail to Acquire Trackwork Business From Balfour Beatty Group LTD.
ALBERTVILLE, Ala., April 15, 2011 -- Progress Rail Services, a wholly-owned subsidiary of Caterpillar Inc., has signed a definitive agreement to purchase the trackwork manufacturing business of Balfour Beatty Group Ltd., based in Sandiacre, England. Upon completion of the transaction, Balfour Beatty's trackwork business will become part of Progress Rail Services UK Ltd., a U.K.-registered associated company of Progress Rail Services Corporation.
Progress Rail currently designs and manufactures trackwork components for the railroad, transit and industrial markets. "With the acquisition of Balfour Beatty's trackwork business, which includes five locations in the United Kingdom, Progress Rail will complement and globalize its existing Engineering and Track Services business unit, allowing even broader service coverage for its customers," said Progress Rail CEO Billy Ainsworth.
Balfour Beatty's trackwork expertise and extensive offerings, including manganese steel castings, track panels, turnouts and crossings, will allow Progress Rail to focus on improved rail engineering and coordinate customer focused efforts through Progress Rail's existing trackwork facilities.
"Investing in transit systems technology will enable Progress Rail to participate in the early stages of high-speed rail projects, while exceeding our customers' expectations for the latest rail products," said Dave Roeder, Progress Rail Senior Vice President of Engineering and Track Services (ETS). "We continue to aggressively grow our ETS business unit, and the acquisition of Balfour Beatty's trackwork manufacturing business will allow us to significantly broaden our trackwork operations."
The relevant people and assets currently utilized in Balfour Beatty's trackwork business will be transferred to the Progress Rail family of companies. Balfour Beatty and Progress Rail will cooperate to ensure a smooth and seamless transition of this business.
"In Progress Rail we have found an industry partner that will develop the Switching and Crossing business further and will integrate it into their worldwide manufacturing program," said Manfred Leger, CEO of Balfour Beatty Rail Division. "I am looking forward to working with Progress Rail as a strong supply chain partner for our global rail infrastructure contracting activities."
The acquisition is expected to close in May 2011. The acquired trackwork business will remain headquartered in Sandiacre, England, in addition to its four other facilities located in the United Kingdom.
About Progress Rail:
Progress Rail Services, a wholly owned subsidiary of Caterpillar Inc., is a leading supplier of remanufactured locomotive and railcar products and services to the railroad industry, operating one of the most extensive rail service and supply networks in North America. We serve our customers through a network of more than 130 locations across the United States, Canada, Mexico, Brazil, Italy, Germany and the United Kingdom, with more than 4,300 employees. Progress Rail Services is headquartered in Albertville, Ala. For more information, visit www.progressrail.com.
About Balfour Beatty Rail:
Balfour Beatty Rail (www.bbrail.com) provides world-class rail infrastructure services in over 20 countries. It delivers systems and services across the whole lifecycle of rail assets, from planning through design and implementation to maintenance and asset management. Balfour Beatty Rail is part of the Balfour Beatty group, a world-class infrastructure group operating in professional services, construction services, support services and infrastructure investments.
Contacts:
Progress Rail, Barbara Cox, Corporate Communications Mgr., 256-505-6485
Pacific Harbor Line, Mike Stolzman, President, 310-984-5770
Port of Los Angeles, Phillip Sanfield, Dir. Media Relations, 310-732-3568
Port of Long Beach, Lee Peterson, Media Relations, 562-901-1781