Caterpillar to buy Electro-Motive Diesel

Caterpillar Inc. agreed to buy a U.S. maker of railroad locomotives on Tuesday for $820 million in cash, expanding its rail business from service into new engine manufacturing.

The world’s largest maker of heavy equipment said it was buying McCook-based Electro-Motive Diesel, which last year generated $1.8 billion in revenue, from private equity firms Berkshire Partners LLC and Greenbriar Equity Group LLC.

[Crain’s Chicago Business]