Caterpillar to Sell Part of Bucyrus Distribution Business to Cat dealer Ferreyros
Mon, 16 Apr 2012
Media Release - http://australia.cat.com/cda/components/fullArticleNoNav?x=7&id=3470840
Caterpillar Inc. (NYSE: CAT) and Ferreyros S.A.A. (BVL: FerreyC1) announced today that they have reached an agreement for Ferreyros to acquire from Caterpillar the distribution and support business formerly operated by Bucyrus in Peru. After closing, Ferreyros expects to begin providing sales, service and support for former Bucyrus mining products in all of Ferreyros’ dealership territories. The transaction is valued at approximately USD $75 million.
“Our agreement with Ferreyros marks the next step in our journey to transition product distribution and support of former Bucyrus machinery to Cat dealers around the world,” said Steve Wunning, Caterpillar group president with responsibility for Resource Industries. “We’re making good progress on our journey, ensuring that wherever there is mining, Caterpillar and our dealers will be there to serve our mining customers.”
The acquired distribution and support business includes inventory in Peru as well as approximately 70 former Bucyrus employees who are expected to transition to Ferreyros upon closing of the transaction.
“This acquisition represents a unique opportunity to bring together the best products, specialists and capacities to offer our mining customers throughout Peru the broadest spectrum of solutions to increase the efficiency of their operations,” said Mariela García de Fabbri, general manager of Ferreyros. “The acquisition will allow us to better serve our customers through one contact point with the support of the Caterpillar worldwide network.”
Caterpillar continues to hold discussions with other Cat dealers that have mining activity in their territories and will continue to operate the former Bucyrus distribution business until the transitions have occurred in a given territory. In addition to the agreement with Ferreyros, Caterpillar closed the transaction with Sime Darby Industrial in the fourth quarter of 2011 and announced agreements with Finning International Inc. and WesTrac Pty Limited.