GM Agrees To Sell Electro-Motive Division
>>
>>
>> DETROIT, Jan. 12 /PRNewswire/ -- General Motors Corp., Greenbriar
>> Equity Group LLC and Berkshire Partners LLC today announced that
they
>> have reached a definitive agreement in which GM will sell its
Electro-
>> Motive Division (EMD) to an investor group led by Greenbriar and
>> Berkshire Partners. Terms of the transaction will not be
disclosed.
>>
>> 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 (UAW) 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.
>>
>> "GM is pleased to have Greenbriar and Berkshire Partners acquiring
>> the company," said William Happel, GM vice president and general
>> manager of Electro-Motive. "These groups have a long-established
>> reputation for excellence as rail industry investors and
financiers.
>> As an independent company with access to the resources of the new
>> owners, Electro-Motive will be well positioned to continue to
service
>> its customers and grow the business."
>>
>> 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. Additional information may be found at
>> _http://www.gmemd.com.
>>
>> General Motors, the world's largest vehicle manufacturer, employs
>> about 325,000 people globally. Founded in 1908, GM has been the
>> global automotive sales leader since 1931. GM today has
manufacturing
>> operations in 32 countries and its vehicles are sold in 192
>> countries.
>>
>> 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. Additional information may be found at
>> http://www.greenbriarequity.com .
>>
>> 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 $11.0 billion of acquisition value and combined revenues
in
>> excess of $15.0 billion. Additional information may be found at
>> _http://www.berkshirepartners.com.
>>
>> SOURCE General Motors Corporation
>>
>> 01/12/2005 11:50 ET
Butch
--
* »»/ Jan Kohl/ ««*
*::: computer security consultant :::*
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