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Today, Progress Rail Services Corp. announced it signed an agreement to purchase Electro-Motive Diesel Inc. (EMD) for $820 million from Berkshire Partners L.L.C. and Greenbriar Equity Group L.L.C.

The acquisition is expected to close by year's end pending final regulatory approval. EMD would become a wholly owned subsidiary of Progress Rail, which is owned by Caterpillar Inc. EMD would maintain its LaGrange, Ill., headquarters and John Hamilton would continue to serve as the company’s president and chief executive officer, Progress Rail officials said in a prepared statement.

Progress Rail provides various rail and transit products in North America, including locomotive upgrades and repairs, rail-car remanufacturing, trackwork, rail welding and repair, and signal design and installation.

“The acquisition of EMD will enable us to provide rail and transit customers an industry-leading range of locomotive, engine and emissions solutions, as well as unmatched aftermarket product and parts support, and a full line of rail-related services and solutions,” said Progress Rail CEO Billy Ainsworth.