Caterpillar signs agreement to acquire ship propulsion manufacturer

By WEEK Reporter

Caterpillar signs agreement to acquire ship propulsion manufacturer

July 1, 2013 Updated Jul 1, 2013 at 10:47 AM CDT

PEORIA, Ill. -- Caterpillar announced Monday that they have signed an agreement to acquire Johan Walter Berg AB, including its core brand of Berg Propulsion, a manufacturer of propulsion systems and marine controls for ships.

With the acquisition, Caterpillar says they will transition from selling only engines and generators to providing complete marine propulsion package systems.

Headquartered in Sweden, Berg has designed and manufactured marine thrusters and controllable pitch propellers since 1929.

Berg will become part of the Caterpillar Marine and Petroleum Power Division.

Berg's thrusters, propellers and control systems will be rebranded as Caterpillar soon after the close of the deal, which is expected in the third quarter 2013.