The world's leading manufacturer of construction equipment and engineering major, Caterpillar Inc, has acquired Canadian manufacturer of tunnel boring machines, Lovat, for an undisclosed sum and announced its own entry into the industry segment.
Lovat's range of used in the construction of metro, railway, road, sewer, water main, penstock, mine access, high voltage cable and telecommunications tunnels. Its acquisition is a strategic fit that complements Caterpillar's global business and suits Caterpillar's long-term growth strategy.
"This acquisition is Caterpillar's entry into the rapidly expanding tunnel boring machine business, and it represents an excellent strategic fit for our companies and the customers we serve around the world," said Stu Levenick, Caterpillar group president.
Lovat customers will benefit from the strength of Caterpillar's global purchasing organization, from its research and development initiatives, Caterpillar's global reach and its experience in large-scale manufacturing processes.
"Lovat customers are already familiar with seeing Caterpillar products working as support machines at tunnel boring projects, and we intend to leverage our global business with continued investment in the Lovat product line and in the tunnel boring business," said Chris Curfman, Caterpillar vice president with responsibility for mining and underground products.
The financial details of the acquisition are not being released. Rick Lovat, president and chief executive officer of Lovat Inc., will join Caterpillar's Global Mining Division and will have responsibility for growing the tunnel boring business within Caterpillar.
"Caterpillar recognises the value of our terrific people, great product offerings and the premium Lovat places on customer relationships. We are honored to be part of Caterpillar," Lovat said. "Just like Caterpillar's machines and engines, Lovat's tunnel boring machines have a reputation for durability, reliability and performance while working in some of the most demanding applications. Our customers should look forward to the integration of Lovat into Caterpillar," Lovat added.
Caterpillar Global Mining supplies support equipment to the surface mining sector and is the world's leading provider of production, support and technology solutions for surface and underground hard-rock mining.
Caterpillar Inc, reported 2007 sales and revenues of $44.958 billion, and is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines.