Caterpillar (CAT) Acquires Stock of MGE Equipamentos & Servicos

June 24, 2008 8:43 AM EDT
Caterpillar Inc. (NYSE: CAT), has reached an agreement to acquire all of the capital stock of MGE Equipamentos & Servicos Ferroviarios Ltda. MGE will become part of Caterpillar's Progress Rail Services Division. Terms of the deal were not disclosed.

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.

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, Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines worldwide.

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