Caterpillar to sell Bucyrus's African business to Barloworld for $115 mn
30 May 2012
Caterpillar Inc, the world's biggest maker of earthmoving equipment, today said that it will sell its Bucyrus distribution and support business in South Africa and Botswana to South African industrial group Barloworld Ltd, for $115 million.
Caterpillar, the world's leading manufacturer of bulldozers, excavators and other earth-moving machinery, had in July 2011 acquired mining-equipment maker Bucyrus for about $7.6 billion.
Since then the Illinois-based company has sold sell off parts of that company's distribution businesses Cat to its independent dealers.
Its last sale was made last month when it agreed to sell a part of its Bucyrus Australian distribution and support business to one of its Australian dealer WesTrac Pty Ltd for $400 million.
The company completed a similar transaction with Sime Darby Industrial and Finning International Inc. It also has deals in place with dealers including Finning International Incand Ferreyros S.A.A.
Barloworld also agreed to acquire other Bucyrus distribution businesses in South Africa and Botswana that had been licensed to Eqstra Holdings Ltd affiliates for about $60 million. That would push the total value of the deal to approximately $175 million, the companies said in a statement.
"This acquisition builds on our existing strengths and will enhance our leading position in the mining industry by significantly expanding the range of equipment solutions we are able to provide to customers operating across southern Africa," said Barloworld CEO. Clive Thomson.