Progress Rail Services Corporation (reporting markPRLX), a fully owned subsidiary of Caterpillar since 2006, is a supplier of railroad and transit system products and services headquartered in Albertville, Alabama.[1] Founded as a recycling company in 1982, Progress Rail has increased the number of its product and service offerings over time to become one of the largest integrated and diversified suppliers of railroad and transit system products and services in North America.[4] Progress Rail markets products and services worldwide and maintains 110 facilities in the United States, 34 in Mexico, 4 in Canada, 2 in Brazil, 5 in the UK, 1 in Italy, and 1 in Germany.[1][2] Progress Rail is organized into two divisions: Infrastructure and Rolling Stock.[3]
In February 2005, Progress Energy announced it was selling Progress Rail to One Equity Partners for $405 million.[5] The sale closed on March 28, 2005, with Progress Rail becoming a separate private company.[6]
On May 17, 2006, Caterpillar Inc. announced it would purchase Progress Rail from One Equity Partners for $1 billion in cash, stock and debt.[7] The acquisition by Caterpillar was announced as part of its long-term strategy, Vision 2020.
In July 2011, the company announced it was to assemble EMD locomotives at a plant leased in the state of Minas Gerais, Brazil.[8][9]
Acquisitions
Progress Rail PR43C locomotive at Anniston, Alabama.
On May 24, 2008 Caterpillar agreed to acquire all of the capital stock of MGE - Equipamentos e Serviços Ferroviários Ltda., a São Paulo, Brazil-based locomotive component and transit car services company to become part of Caterpillar's Progress Rail Services Corporation. The acquisition of MGE marked Progress Rail's first entry into the South American market.[10]
On June 1, 2010, Caterpillar announced Progress Rail would buy Electro-Motive Diesel from Berkshire Partners LLC and Greenbriar Equity Group LLC for US$820 million.[11] The purchase was completed on August 2, 2010, making Electro-Motive Diesel a wholly owned subsidiary of Progress Rail Services Corporation.[12]
In February 2012 Progress Rail permanently closed the EMD London, Ontario plant after labour dispute shuttered the manufacturing plant.[14]
In 2019, Progress Rail acquired Cleveland Track Material, Inc. which was a subsidiary of Vossloh Cogifer.
Federal legal matters
During October 2013, Caterpillar announced that a federal criminal indictment had been secured against Progress Rail Services.[15] In 2017, the company pleaded guilty to the charges, including dumping parts into the ocean. A $5,000,000 fine was paid as well as $20,000,000 in restitution.[16]
^ ab"MGE Transportes". mgetransportes.com. MGE Equipamentos & Serviços Ferroviários Ltda. 2009. Archived from the original on 2010-07-13. Retrieved 2010-10-24. ...two factories: one in Diadema and another in Hortolandia, both in the state of Sao Paulo.
^ ab"The Power of Progress at Work". progressrail.com. Progress Rail Services Corporation. 2010. Archived from the original(Adobe ShockWave flash video - .swf) on 2010-11-28. Retrieved 2010-10-24. Two divisions....Locomotive & Railcar Services....Engineering & Track Services...
^ ab"Progress Rail Services - Services - Recycling". progressrail.com. Progress Rail Services Corporation. 2010. Archived from the original on 2010-11-28. Retrieved 2010-10-24. Progress Rail started out as a recycling company in the early 1980s, and although we have expanded our line of product and service offerings, recycling is still the heartbeat of our company.
^"Progress Rail Services - Progress Rail Acquires Electro-Motive Diesel". progressrail.com. Progress Rail Services Corporation. 2010-06-01. Archived from the original on 2010-11-28. Retrieved 2010-10-24. Progress Rail has signed a definitive agreement to purchase Electro-Motive Diesel (EMD) for $820 million in cash from Berkshire Partners LLC and Greenbriar Equity Group LLC. Upon completion of the transaction, EMD will become a wholly owned subsidiary of Progress Rail.
