Cat to acquire Brazilian rail services company

Staff Writer
Mount Shasta Herald

Caterpillar Inc. announced today it will acquire the capital stock of a leading Brazilian locomotive component company and make it part of its own rail services division.

Caterpillar said it reached agreement to buy the stock of MGE Equipamentos & Servicos Ferroviarios Ltda. Based 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, the company said in a news release. Also, MGE maintains, modernizes and rebuilds transit cars and locomotives. Customers include various transit authorities and railroads in South America.

MGE will become part of Caterpillar’s Progress Rail Services division established when Caterpillar acquired Progress Rail Co. and made it a subsidiary several years ago.

MGE is a market leader in the Brazilian market for the products and services it provides, the news release said.

"The acquisition of MGE represents an important step in Progress Rail’s international growth strategy," said Billy Ainsworth, Caterpillar vice president responsible 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."