Caterpillar buys MGE
MGE: Brazilian electrical equipment manufacturer and rolling stock refurbishment company MGE Equipamentos & Serviços Ferroviários has been bought by Caterpillar, the companies announced on June 24.
MGE has plants at two locations in São Paulo state. As well as supplying traction and control equipment, the company maintains and refurbishes locomotives and passenger vehicles for various South American operators.
The acquisition is the first expansion outside North America by Caterpillar's Progress Rail Services Division. 'The acquisition of MGE represents an important step in Progress Rail's international growth strategy', said Billy Ainsworth, Caterpillar Vice-President responsible for the division. Ronaldo Moriyama and Carlos Roso, who were principal MGE shareholders, will continue to serve as co-Managing Directors reporting to Ainsworth.
'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 Caterpillar Group President Steve Wunning.