Progress Rail Services Acquires Electro-Motive Diesel for US$820M

On August 2, 2010, Progress Rail Services, a wholly owned subsidiary of Caterpillar Inc. and one of the largest providers of rail and transit products and services in North America, completed the acquisition of Electro-Motive Diesel (“EMD”) from Berkshire Partners LLC and Greenbriar Equity Group LLC for US$820 million in cash plus a net working capital adjustment. EMD is headquartered in LaGrange, Illinois with manufacturing facilities in London, Ontario.

In the US, Progress Rail was represented by General Counsel Raj Kanuru and by Mayer Brown LLP, with a team led by Paul Crimmins and John Sagan and including Debra Hoffman and Marcia Goodman (employment and benefits); James Barry (tax); Thomas Dimond (environmental); Patrick McNerney (real estate) and Michael Gill (litigation). Progress Rail was represented in Canada by Blake, Cassels & Graydon LLP with a team led by Greg Frenette and including Jake Gilbert and Dean Murray (M&A/corporate); Kathleen Penny and Andrew Spiro (tax); Derek Rogers and Kate Macartney (labour and employment); Jess Bullock (pensions and benefits); Jonathan Kahn (environmental); John Hutmacher (real estate) and Navin Joneja (competition).

Berkshire and Greenbriar were advised in the US by Ropes & Gray LLP with a team led by James Lidbury (private equity) and including Jonathan Grandon (private equity); Erik Corwin (tax) and Mit Spears (anti-trust). Berkshire and Greenbriar were represented in Canada by McCarthy Tétrault LLP with a team led by Harold Huber and including Suzanne Murphy (corporate); Patrick McCay (tax); Alfred Macchione (technology); Sunil Kapur (labour and employment) and Oliver Borgers (competition).