GM agrees to sell Electro-Motive division
The sale agreement covers substantially all of the Electro-Motive businesses, including North American and international locomotives; power, marine and industrial products; the spare parts and parts rebuild business; and all of Electro-Motive's locomotive maintenance contracts worldwide. Both the LaGrange, Illinois and London, Ontario manufacturing facilities are included in the agreement. The proposed sale is contingent on completing negotiations with the United Auto Workers Union and the subsequent ratification by its members. The transaction is expected to close in the first quarter of 2005. "Greenbriar and Berkshire Partners have a long-term commitment to creating value in the railroad industry that extends back to the 1980s. Electro-Motive has outstanding products, employees and a truly global franchise, and we believe the company's prospects are bright," stated Reginald Jones, a managing partner of Greenbriar Equity Group. Electro-Motive employs approximately 2,600 hourly and salaried people. The company designs, manufactures, markets, sells, and services freight and passenger diesel-electric locomotives and diesel marine and power generation products for use worldwide.