Progress Rail Acquires GE Transportation's Inspection Products Business
Erie, Pennsylvania, USA and Albertville, Alabama, USA, (March 2, 2010) GE Transportation and Progress Rail Services Corporation (Progress Rail) announced that they have completed the sale of GE's Inspection Products business to Progress Rail. Inspection Products is part of GE's larger signaling and communications division, known as Intelligent Control Systems (ICS) and part of GE Transportation. Inspection Products has a strong presence in both North America and Europe. The business designs, manufactures and sells hot wheel and hot box detectors, data acquisition systems, draggers and other related inspection products for the global freight and passenger rail segments.
Progress Rail, a wholly-owned subsidiary of Caterpillar Inc., is the ideal new owner for GE's Inspection Products business. Progress Rail has an extensive history of customer satisfaction and meeting major rail customers' track-related needs. With this acquisition, Progress Rail will further enhance its global product portfolio, while complementing and strengthening the company's current product and service offerings.
The acquired business unit will fall under Progress Rail's Engineering and Track Services (ETS) group, and will be referred to as the Inspection and Information Systems business. The relevant people and assets currently being utilized in GE's Inspection Products business to fulfill inspection products contracts will be transferred to the Progress Rail family of companies.
"The acquisition of GE's Inspection Products business represents an important part of Progress Rail's international growth strategy," said David Roeder, Senior Vice President of Progress Rail's ETS group. "We welcome the management and employees of GE's Inspection Products business to Progress Rail and Team Caterpillar and look forward to serving GE Transportation's existing customers, as well as providing Inspection and Information Systems products to the European rail segment."
GE and Progress Rail will cooperate to ensure a smooth and seamless transition of this business. Moreover, GE and Progress Rail are committed to maintaining a long-term relationship.
"Progress Rail and GE Transportation are both solid and respected players in the rail industry," said Pierre Comte, President and CEO of GE Transportation's Intelligent Control Systems business. "I am confident that Progress Rail's keen focus on the rail industry's track-related needs, which is a natural fit for GE's Inspection Products, will be beneficial to customers and employees."
GE Transportation was advised by Charcot Capital, a London-based financial advisory company.
About GE Transportation
Established more than 100 years ago, GE Transportation, a unit of General Electric Company (NYSE: GE), is a global technology leader and supplier to the railroad, marine, drilling, and mining and wind industries. GE Transportation provides freight and passenger locomotives, signaling and communications systems, information technology solutions, marine engines, motorized drive systems for mining trucks and drills, high-quality replacement parts and value added services. GE Transportation is headquartered in Erie, Pennsylvania, USA, and employs approximately 8,000 employees worldwide. For more information, visit www.getransportation.com.
About Progress Rail
Progress Rail Services Corporation, a subsidiary of Caterpillar Inc., is one of the largest integrated and diversified suppliers of railroad and transit system products and services in North America. Progress Rail continues to expand its proven and successful business model to an ever-growing worldwide market. The company's broad range of services includes locomotive upgrade and repair, rail wagon remanufacturing, rail welding, rail repair and replacement, signal design and installation, maintenance of way equipment, parts reclamation and recycling. Currently Progress Rail serves its customers through a network of more than 110 facilities in the United States, 28 in Mexico, four in Canada, and one in South America. Progress Rail is headquartered in Albertville, Alabama, and employs approximately 4,300 employees globally.
Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. The technology and world reach of Caterpillar, combined with the service standard and historical reliability of Progress Rail, assures that Progress Rail products and services will continue to make a growing impact on the world rail industry.
GE Transportation Media Contact:
Tom Scott
Tel: +33 1 43 12 77 81 (office)
Tel: +33 6 35 24 92 33 (cell)
Thomasxavier.scott@ge.com
Progress Rail Media Relations
Tel: +1-800-476-8769
Tel: +1-256-505-6485
info@progressrail.com