Caterpillar-owned diesel-electric locomotives manufacturer Progress Rail is set to buy Downer Group’s Australian freight operations for $109 million.
Around 360 people currently employed by Downer are expected to transfer to Progress Rail as part of the deal.
The sale includes Downer’s customer contracts, associated assets, and facilities located at Malaga (Western Australia), Port Augusta (South Australia) and Clyde (New South Wales).
The two companies have worked together for almost seven decades, supplying and maintaining locomotives in Australia.
The sale of Downer’s freight business is still subject to conditions and is scheduled for completion in January next year.