April 5, 2005
Greenbriar Equity Group LLC, Berkshire Partners LLC, and certain related parties today announced the completion of the acquisition of Electro-Motive Division from General Motors. The company, which will be named Electro-Motive Diesel Inc. (EMD), is one of the world's largest manufacturers of freight and passenger diesel-electric locomotives.
The transaction 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, Ill., and London, Ont., manufacturing facilities are included in the agreement.
Greenbriar and Berkshire also announced that John Hamilton has been named president and CEO of EMD. Hamilton, who worked with Greenbriar and Berkshire on the transaction for more than a year, has served in senior management roles of several manufacturing companies in the transportation industry over the past decade. Jerry Greenwald, a founder of Greenbriar, and formerly vice chairman of Chrysler in the 1980s and more recently CEO of United Airlines, will serve as non-executive chairman of EMD.
EMD 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, EMD and its associates have produced more than 58,000 diesel-electric locomotives for customers in 73 countries. Electro-Motive diesel engines are used in more than 100 countries worldwide.