Charterfields on track for Progress

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Advisers from Sheffield have played a crucial role in a transatlantic deal that resulted in parts of Balfour Beatty Rail joining US giant Caterpillar.

Valuation specialist Charterfields advised Caterpillar subsidiary Progress Rail Services on its acquisition of Balfour Beatty Rail’s UK track work manufacturing business.

Sharrowvale Road-based Charterfields provided valuations of manufacturing sites in Shepcote Lane, Sheffield; Sandiacre, near Nottingham, Darlington and South Queensferry in Scotland.

Managing director Neil Warburton led the Charterfields team.

Mr Warburton said: “The project required us to provide valuations of complex manufacturing assets within a restrictive timeframe.

“The surveys covered foundry facilities, including the South Queensferry plant, which is one of the few new foundries in the UK.

“The Progress Rail assignment underlines the continued expansion of Charterfields’ activities in the mergers and acquisitions sector and our growing international client base.”

Progress Rail is one of the largest suppliers of rail products and services in North America. It says the acquisition provides it with a springboard into Europe, while allowing Balfour Beatty Rail to focus on its core business.

Around 30 people are employed at Progress Rail’s Shepcote Lane site, which used to be known as Edgar Allen Engineering.

Now known as Progress Rail Services UK, the business designs and manufactures manganese steel castings, track panels, turnouts and crossings at its UK plants, generated revenue of £55 million in 2010 and had gross assets of £43 million.

Balfour Beatty Rail’s supplies and contracting business in Coleford Road, Darnall, was not part of the Progress Rail deal and continues to be part of Balfour Beatty.