Caterpillar to Sell Part of Bucyrus Distribution Business to Cat Dealer Ferreyros
PEORIA, Ill., April 16, 2012 /PRNewswire/ -- Caterpillar Inc. (CAT) (NYSE: CAT) and Ferreyros S.A.A. (BVL: FerreyC1) announced today that they have reached an agreement for Ferreyros to acquire from Caterpillar the distribution and support business formerly operated by Bucyrus in Peru. After closing, Ferreyros expects to begin providing sales, service and support for former Bucyrus mining products in all of Ferreyros' dealership territories. The transaction is valued at approximately USD $75 million.
"Our agreement with Ferreyros marks the next step in our journey to transition product distribution and support of former Bucyrus machinery to Cat dealers around the world," said Steve Wunning, Caterpillar group president with responsibility for Resource Industries. "We're making good progress on our journey, ensuring that wherever there is mining, Caterpillar and our dealers will be there to serve our mining customers."
The acquired distribution and support business includes inventory in Peru as well as approximately 70 former Bucyrus employees who are expected to transition to Ferreyros upon closing of the transaction.
"This acquisition represents a unique opportunity to bring together the best products, specialists and capacities to offer our mining customers throughout Peru the broadest spectrum of solutions to increase the efficiency of their operations," said Mariela Garcia de Fabbri, general manager of Ferreyros. "The acquisition will allow us to better serve our customers through one contact point with the support of the Caterpillar worldwide network."
Caterpillar continues to hold discussions with other Cat dealers that have mining activity in their territories and will continue to operate the former Bucyrus distribution business until the transitions have occurred in a given territory. In addition to the agreement with Ferreyros, Caterpillar closed the transaction with Sime Darby Industrial in the fourth quarter of 2011 and announced agreements with Finning International Inc. and WesTrac Pty Limited.
For more than 85 years, Caterpillar Inc. has been making sustainable progress possible and driving positive change on every continent. With 2011 sales and revenues of $60.138 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services. More information is available at: http://www.caterpillar.com.
Ferreyros is the largest distributor of capital goods and associated services in Peru. Ferreyros was founded in 1922 and has been a Cat dealer since 1942. Ferreyros also represents other renowned brands that are complementary to its Caterpillar portfolio, such as Terex, Paus, Oldenburg, Metso, Massey Ferguson, Kenworth and Iveco among others. The company directs its commercial activities toward meeting the demand and providing solutions for diverse sectors of the country's economy, such as mining, construction, energy, industry, hydrocarbons, fishing, government, transportation and agriculture. Currently, it has operations in more than 60 locations throughout the country, with a network of branches and offices and constant on-site support. More information is available at: http://www.ferreyros.com.pe/.
Certain statements in this press release relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "estimate," "will be," "will," "would," "expect," "anticipate," "plan," "project," "intend," "could," "should" or other similar words or expressions often identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, forecasts or trend descriptions. These statements do not guarantee future performance, and we do not undertake to update our forward-looking statements.
Caterpillar's actual results may differ materially from those described or implied in our forward-looking statements based on a number of factors, including, but not limited to: (i) global economic conditions and economic conditions in the industries and markets we serve; (ii) government monetary or fiscal policies and infrastructure spending; (iii) commodity or component price increases and/or limited availability of raw materials and component products, including steel; (iv) our and our customers', dealers' and suppliers' ability to access and manage liquidity; (v) political and economic risks and instability, including national or international conflicts and civil unrest; (vi) our and Cat Financial's ability to: maintain credit ratings, avoid material increases in borrowing costs, and access capital markets; (vii) the financial condition and credit worthiness of Cat Financial's customers; (viii) inability to realize expected benefits from acquisitions and divestitures, including the acquisition of Bucyrus International, Inc.; (ix) international trade and investment policies; (x) challenges related to Tier 4 emissions compliance; (xi) market acceptance of our products and services; (xii) changes in the competitive environment, including market share, pricing and geographic and product mix of sales; (xiii) successful implementation of capacity expansion projects, cost reduction initiatives and efficiency or productivity initiatives, including the Caterpillar Production System; (xiv) sourcing practices of our dealers or original equipment manufacturers; (xv) compliance with environmental laws and regulations; (xvi) alleged or actual violations of trade or anti-corruption laws and regulations; (xvii) additional tax expense or exposure; (xviii) currency fluctuations; (xix) our or Cat Financial's compliance with financial covenants; (xx) increased pension plan funding obligations; (xxi) union disputes or other employee relations issues; (xxii) significant legal proceedings, claims, lawsuits or investigations; (xxiii) compliance requirements imposed if carbon emissions legislation and/or regulations are adopted; (xxiv) changes in accounting standards; (xxv) failure or breach of IT security; (xxvi) adverse effects of natural disasters; and (xxvii) other factors described in more detail under "Item 1A. Risk Factors" in our Form 10-K filed with the SEC on February 21, 2012 for the year ended December 31, 2011. This filing is available on our website at www.caterpillar.com/secfilings.
SOURCE Caterpillar Inc.