PEORIA, Ill -- Caterpillar announced Thursday that it has signed an agreement that would result in Platinum Equity acquiring a 65 percent equity stake in Caterpillar Logistics Services LLC.
According to Caterpillar, the pending sale of the third party business supports Caterpillar's focus on the continuing growth opportunities in its core business. The overall transaction is valued at over $750 million.
Under the terms of the agreement, Caterpillar will still retain a 35 percent equity stake in the business. Other terms of the agreement are not being disclosed.
"The sale of the third party logistics business would be a key step in the execution of our enterprise strategy. This event enables Caterpillar to increase its focus on our core business that aligns with our strategic business model," said Stu Levenick, Caterpillar group president with responsibility for Customer & Dealer Support.
Platinum Equity Partner Jacob Kotzubei said the investment is a perfect fit for his organization given the firm's experience in executing carve-out transactions and operating logistics businesses.
"We have a lot of experience owning and operating businesses that provide complex supply-chain solutions," said Kotzubei. "We know what customers expect, and we share Cat Logistics' commitment to the highest levels of service and dependability."