Caterpillar to acquire German engine maker MWM from 3i for $810 million

Caterpillar Inc, the world's biggest manufacturer of construction and heavy equipment, today agreed to acquire German engine maker Motoren-Werke Mannheim Holding (MWM), from private equity firm 3i for $810 million in cash.

With the acquisition of MWM, Caterpillar said that it will significantly expand customer options for sustainable power generation solutions

Mannheim-based MWM formerly known as Deutz Power Systems is a mechanical engineering company and is one of the world`s leading suppliers of eco-friendly systems for energy production based on gas and diesel engines.

With a history going back to over 135 years, MWM employs 1,100 people has 11 subsidiaries and operates in four market segments: co-generation, special gases greenhouse systems and diesel engines.

"MWM is recognized for its leading technology and product strength, particularly for its highly efficient range of engines, combined heat and power and trigeneration solutions capable of operating on a wide range of gaseous fuels including natural gas, biogas, mine gas and industrial waste gas," said Caterpillar CEO Doug Oberhelman.

"This is a natural complement to Caterpillar's existing diesel and gas power generation business and demonstrates our commitment to continued investment in sustainable products and industries," Oberhelman added.

MWM will become part of Caterpillar's electric power division, which supplies natural gas and diesel generator sets and integrated power systems, said the Peoria, Illinois-based Caterpillar, a Fortune 500 Company.

London-based 3i had acquired MWM in 2007 for €360 million and the private equity firm will generate a 2.2 times return on its investment.