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After building locomotives for more than 70 years, General Motors Corp. is exiting the business. Yesterday, GM announced it reached an agreement to sell subsidiary Electro-Motive Division (EMD) to an investor group led by Greenbriar Equity Group L.L.C. and Berkshire Partners L.L.C. Terms weren't disclosed.

The agreement covers nearly all of EMD's businesses, including North American and international locomotives; power, marine and industrial products; spare parts and parts rebuilding businesses; and worldwide locomotive maintenance contracts. The group also would obtain EMD's plants in LaGrange, Ill., and London, Ontario.

Expected to close during the first quarter, the transaction is contingent on a new labor agreement with the United Auto Workers Union and ratification by union members. EMD employs about 2,600 people.

"Greenbriar and Berkshire Partners have a long-term commitment to creating value in the railroad industry that extends back to the 1980s," said Reginald Jones, managing partner of Greenbriar Equity Group -- which makes private equity investments in freight and passenger transportation, commercial aerospace, and the automotive and logistics industries -- in a prepared statement. "Electro-Motive has outstanding products, employees and a truly global franchise, and we believe the company's prospects are bright."

Since the early 1930s, EMD has built more than 58,000 freight and transit diesel-electric locomotives for customers in 73 countries.