MGE Equipamentos & Servicos Ferroviarios Ltda. will become part of
Caterpillar's Progress Rail Services Division
PEORIA, Ill., June 24 /PRNewswire-FirstCall/ -- Caterpillar Inc.
(NYSE: CAT), has reached an agreement to acquire all of the capital stock of
MGE Equipamentos & Servicos Ferroviarios Ltda. (MGE). Based in Diadema and
Hortolandia -- in Sao Paulo State, Brazil, MGE is a manufacturer and
reconditioner of traction motors, main and auxiliary generators, control
equipment and auxiliary components for locomotives and transit cars. In
addition, MGE maintains, modernizes and rebuilds transit cars and locomotives.
Customers include various transit authorities and railroads in South America.
MGE is a market leader in the Brazilian market for the products and services
it provides and is recognized for its quality and customer satisfaction. MGE
will become part of Caterpillar's Progress Rail Services Division (Progress
The acquisition of MGE represents an important step in Progress Rail's
international growth strategy, said Billy Ainsworth, Caterpillar vice
president with responsibility for Progress Rail. We welcome the management
and employees of MGE to Progress Rail and Team Caterpillar and look forward to
serving MGE's existing customers as well as providing products and services to
the rapidly growing rail and transit industry in South America.
Progress Rail is one of the largest integrated and diversified suppliers
of railroad and transit system products and services in North America. These
products and services include various types of rolling stock and track
infrastructure. Headquartered in Albertville, Alabama, Progress Rail operates
in more than 110 locations with 4,625 employees in the United States, Canada
and Mexico. The acquisition of MGE is the first business expansion for
Progress Rail outside of North America.
The continued growth of our service businesses is an important part of
Caterpillar's Vision 2020 strategy, and the acquisition of MGE is a logical
first step as Progress Rail expands its proven and successful business model
outside of the North American market, said Steve Wunning, Caterpillar Group
Progress Rail and MGE see important synergies leveraging Progress Rail's
extensive range of products and services, MGE's relationships with the
Brazilian railroads and transit systems, and Caterpillar's relationships with
Brazilian mining and construction industries. Caterpillar has had a presence
in Brazil since 1954 and continues to invest in its Brazilian operations.
Caterpillar's primary administrative and operational activities are located in
the city of Piracicaba, State of Sao Paulo. In addition, Caterpillar and its
independent dealer network in Brazil service and support an extensive range of
construction and mining equipment operating in Brazil's large and growing
mining and construction industries.
Ronaldo H. Moriyama and Carlos A.A. Roso, who were principal MGE
shareholders, will continue to serve as co-managing directors reporting to
Billy Ainsworth as part of Progress Rail.
For more than 80 years, Caterpillar Inc. has been making progress possible
and driving positive and sustainable change on every continent. With 2007
sales and revenues of $44.958 billion, Caterpillar is the world's leading
manufacturer of construction and mining equipment, diesel and natural gas
engines and industrial gas turbines. The company also is a leading services
provider through Caterpillar Financial Services, Caterpillar Remanufacturing
Services, Caterpillar Logistics Services and Progress Rail Services. More
information is available at http://www.cat.com.
Certain statements in this release relate to future events and
expectations and as such constitute forward-looking statements involving known
and unknown factors that may cause actual results of Caterpillar Inc. to be
different from those expressed or implied in the forward-looking statements.
In this context, words such as will, expect, anticipate or other similar
words and phrases often identify forward-looking statements made on behalf of
Caterpillar. It is important to note that actual results of the company may
differ materially from those described or implied in such forward-looking
statements based on a number of factors and uncertainties, including, but not
limited to, changes in economic conditions; currency exchange or interest
rates; political stability; market acceptance of the company's products and
services; significant changes in the competitive environment; epidemic
diseases; changes in law, regulations and tax rates; and other general
economic, business and financing conditions and factors described in more
detail in the company's Form 10-Q filed with the Securities and Exchange
Commission on May 2, 2008. This filing is available on our website at
http://www.cat.com/secfilings. We do not undertake to update our
Jim Dugan of Caterpillar Corporate Public Affairs,