Caterpillar to sell part of Bucyrus Distribution to Barloworld

By WEEK Reporter

Caterpillar to sell part of Bucyrus Distribution to Barloworld

May 30, 2012 Updated May 30, 2012 at 10:16 AM CDT

PEORIA, Ill -- Caterpillar Inc. and Barloworld Limited announced Wednesday that Caterpillar Mining LLC and Barloworld have signed an agreement for Barloworld to acquire the Bucyrus distribution and support business in South Africa and Botswana.

The transaction between Caterpillar and Barloworld is valued at approximately $115 million.

In addition, Caterpillar Global Mining has assigned to Barloworld its agreements with Eqstra NH Equipment (Pty) Limited and Eqstra Botswanna Limited for the purchase of Eqstra's South Africa and Botswanna Bucyrus distributorship and mining services businesses.  For Barloworld, the transaction is valued at $175 million.

"We're pleased to announce this agreement today as we continue to make good progress on our transition of the product distribution and support of former Bucyrus machinery to Cat dealers around the world," Caterpillar group president with responsibility for Resource Industries Steve Wunning said.

Subject to closing conditions and required regulatory approvals, it is anticipated that the transaction will be finished in the third quarter of 2012.

Following completion of the acquisition, approximately 470 former Bucyrus and Eqstra employees and contract workers are expected to transition to Barloworld.