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Caterpillar Inc. recently reached an agreement to acquire all the capital stock of Brazil's MGE Equipamentos & Servicos Ferroviarios Ltda. (MGE), which manufactures and reconditions traction motors, main and auxiliary generators, control equipment and auxiliary components for locomotives and transit cars.

MGE — which also maintains, modernizes and rebuilds transit cars and locomotives for South American railroads and transit authorities — will become part of Caterpillar's Progress Rail Services Division. The acquisition represents the first business expansion outside North America for Progress Rail, which provides various railroad and transit system products and services, and operates more than 110 facilities in the United States, Canada and Mexico.

Principal MGE shareholders Ronaldo Moriyama and Carlos Roso will continue to serve as co-managing directors and report to Caterpillar Vice President William Ainsworth, who manages the Progress Rail division.

"The acquisition of MGE represents an important step in Progress Rail's international growth strategy," said Ainsworth in a prepared statement.