GENERAL Motors Corp announced on January 12 that it had reached a definitive agreement to sell Electro-Motive Division to an investor group led by Greenbriar Equity Group and Berkshire Partners. Transaction terms will not be disclosed.
The manufacturing facilities at LaGrange, Illinois, and London, Ontario, are included in the agreement, which covers all EMD businesses, including locomotives, power, marine and industrial products, spares and parts rebuilding, as well as all worldwide locomotive maintenance contracts. Subject to ratification by members of the United Auto Workers Union, the transaction is expected to close in the first quarter of 2005.
Greenbriar Equity Group focuses on private equity investments in the transport and related sectors, and has entered into a strategic joint venture and co-investment agreement with Berkshire Partners, which has experience in consumer products, industrial manufacturing, transportation, communications, business services and retailing.
General Motors Vice-President and General Manager of EMD William Happel said ’as an independent company with access to the resources of the new owners, Electro-Motive will be well positioned to continue to service its customers and grow the business.’
Market Development Director Curt Swenson confirmed that the Electro-Motive name and EMD initials ’will continue’.