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 globalise 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 utilised 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.
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.