Industrial contract logistics company Neovia Logistics explores sale

Caterpillar Inc backed Neovia Logistics, is exploring a sale that could value the industrial contract logistics company at more than $1 billion, according to people familiar with the matter.

Los Angeles-based private equity firm Platinum Equity had in 2012 acquired a 65-per cent stake in Caterpillar Logistics Services from Caterpillar, the world's largest construction and mining equipment maker, for $750 million and renamed it Neovia Logistics. (See: Platinum Equity to acquire 65 % in Caterpillar Logistics for $750 million)

Peoria, Illinois-based Caterpillar retained a 35 per cent equity stake.

Neovia has hired Swiss investment bank UBS to run an auction and is preparing to contact potential buyers, the report said.

Neovia is a global industrial contract logistics company offering customer-centric supply chain solutions across all continents in key sectors including industrial, automotive, mining, maintenance, repair and operations, oil and gas, consumer durables, aerospace and defense, high tech and electronics, and health care.

The Dallas-based company also provides innovative technology and systems, including management of warehouses, operations, inventory, and transportation, as well as inbound manufacturing and reverse logistics.

Neovia, which has around 96 facilities and employees in 25 countries, was established by Caterpillar in 1986.