Progress Rail to acquire Downer Freight Rail in Australia

Progress Rail has signed an agreement to acquire Downer EDI's freight-rail business, which is based in North Ryde, Australia.

Downer Freight Rail provides a suite of rolling stock, aftermarket parts and services.

The acquisition will strengthen Progress Rail's existing business in Australia, which includes rolling stock maintenance, as well as infrastructure and signaling facilities, company officials said in a press release.

"This acquisition allows Progress Rail to directly serve rail customers in Australia with best-in-class products and services," said Billy Ainsworth, president and chief executive officer of Progress Rail, and senior vice president of Caterpillar Inc. "It also reinforces Progress Rail's commitment to the rail industry."

Progress Rail and Downer have worked together for nearly 70 years, with a primary focus on EMD-branded products. Historically, Progress Rail sold EMD locomotive kits to Downer, from which Downer created its own locomotives for use in Australia.

More recently, the companies collaborated on developing EMD freight locomotives for use in Australia. The locomotives are manufactured in Progress Rail's plant in Muncie, Indiana.

The acquisition is expected to close in January. Financial terms weren't disclosed.