CATERPILLAR Inc announced on May 16 that it would acquire Progress Rail Services Inc from One Equity Partners for $425m in cash, $375m in stock and stock and assumption of $200m of debt. JP Morgan Chase buy-out unit OEP had acquired Progress Rail for $438m in 2005.

Progress Rail has around 3700 employees at plants in 29 US states, Canada and Mexico. It supplies remanufactured locomotives, wagons and track products and undertakes rolling stock repairs.

`The rail aftermarket services business is a strong fit with our strategic direction and will leverage our remanufacturing capability’, said Caterpillar Chairman Jim Owens.