Caterpillar to sell its 65 percent stake in Cat Logistics’ third party logistics division for $750 million
May 15, 2012
Caterpillar will sell its 65 percent stake in Cat Logistics’ third party logistics (3PL) division to US-based merger and acquisitions specialist Platinum Equity for $750 million.
The world’s largest manufacturer of mining and construction equipment says the deal to sell Caterpillar Logistics Services will allow the company to “focus on the continuing opportunities in its core businesses”.
“We believe the transaction with Platinum will set the third party logistics business on a path for continued growth and success,” says Caterpillar Group President Stu Levenick.
Cat Logistics Vice President Steve Larson adds he is confident Platinum is the right partner to “focus on the third party logistics business and grow it to build long-term value”.
Under the agreement, Caterpillar will retain a 35 percent stake in the 3PL unit, which is a wholly owned subsidiary of Caterpillar Logistics Inc, known as Cat Logistics.
Caterpillar Logistics Services will continue to provide logistics services for non-Caterpillar branded parts including FG Wilson, Perkins, Solar, as well as for Caterpillar Japan.
The company says the sale won’t impact its manufacturing logistics and transportation operations and Cat brand parts distribution.
The deal is expected to close in the third quarter.
Caterpillar’s first-quarter profit climbed 29 percent as builders replaced old gear and global demand for mining equipment boomed.