Caterpillar to acquire Brazilian train-component maker

Caterpillar Inc., the world's largest maker of earthmoving machines, agreed to acquire MGE Equipamentos & Servicos Ferroviarios Ltda., a Brazilian manufacturer of components for trains. Financial terms weren't disclosed.

MGE also maintains and rebuilds locomotives and transit cars and its customers include railroads and transportation authorities throughout South America, Peoria-based Caterpillar said in a statement today.

MGE, based in Diadema and Hortolandia, will become part of Caterpillar's Progress Rail unit in its first expansion outside North America. Caterpillar said it has sold mining and construction equipment in Brazil since 1954. South America accounted for 11 percent of Caterpillar's total first-quarter revenue of $11.8 billion.

Carlos A.A. Roso and Ronaldo H. Moriyama, principal shareholders of MGE, will serve as co-managing directors and report to Billy Ainsworth at Progress Rail, the company said. Progress Rail, based in Albertsville, Ala., operates 110 locations and employs 4,625 people in the U.S., Canada and Mexico.

Caterpillar fell $1.34 to $78.66 at 9:45 a.m. in New York Stock Exchange composite trading. The shares had gained 10 percent this year before today.