DETROIT - General
Motors Corp. (NYSE: GM), Greenbriar Equity Group LLC and Berkshire
Partners LLC today announced that they have concluded the sale of
Electro-Motive Division (EMD) by GM to an investor group led by
Greenbriar and Berkshire Partners. The transaction was previously
announced in January when the parties signed a sale agreement. Terms
of the transaction were not disclosed.
The new company,
Electro-Motive Diesel (EMD), Inc., will continue to be based in
LaGrange, Illinois.
The sale 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 sale.
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. Since the early 1930s, Electro-Motive
and its associates have produced more than 58,000 diesel-electric
locomotives for customers in 73 countries. Electro-Motive diesel
engines are used in over 100 countries worldwide.
Greenbriar Equity
Group LLC is focused exclusively on making private equity investments
in the global transportation industry, including companies in freight
and passenger transport, commercial aerospace, automotive, logistics,
and related sectors. Greenbriar and Berkshire Partners LLC have
entered into a strategic joint venture and co-investment agreement
to address transportation and related investment opportunities.
Greenbriar manages $700 million of committed limited partner capital
and co-investment commitments and, together with Berkshire, has
access to more than $1 billion for investment in privately negotiated
equity investments within the transportation industry.
Berkshire Partners
has invested in mid-sized private companies for the past twenty
years through six investment funds with aggregate capital commitments
of approximately $3.5 billion. The firm's investment strategy is
to seek companies that have strong growth prospects and to partner
with talented management teams who are interested in being owners
of the companies they operate. Berkshire has developed specific
industry experience in several areas including consumer products,
industrial manufacturing, transportation, communications, business
services, and retailing and related services. Berkshire has been
an investor in over 80 operating companies with more than $12.0
billion of acquisition value and combined revenues in excess of
$15.0 billion.
