Caterpillar to Acquire Berg Propulsion, Significantly Expanding Customer Options for Advanced Marine Power Solutions
PEORIA, Ill., July 1, 2013 /PRNewswire/ -- Caterpillar Inc. (CAT) (NYSE: CAT) has signed a definitive agreement to acquire Johan Walter Berg AB, including its core brand of Berg Propulsion, a leading manufacturer of mechanically and electrically driven propulsion systems and marine controls for ships. With the acquisition, Caterpillar will transition from selling only engines and generators to providing complete marine propulsion package systems.
Headquartered in Ockero Islands, Sweden, Berg has designed and manufactured heavy-duty marine thrusters and controllable pitch propellers since 1929. Its proprietary systems are employed in maritime applications throughout the world that require precise maneuvering and positioning.
"Berg is one of the most highly regarded brands in the marine industry," said Tom Frake, Caterpillar vice president with responsibility for the Marine and Petroleum Power Division. "Our team will now be able to provide worldwide Caterpillar support to marine operators for a complete, optimized propulsion package, including bow thrusters, gear boxes and shaft alternators. In addition, Berg's expertise, focus on maximizing customers' uptime and minimizing operation cost aligns well with Caterpillar's value proposition."
Berg will become part of the Caterpillar Marine and Petroleum Power Division, which supplies diesel and natural gas engines for the generation, control and supply of mechanical and electric power for the marine and petroleum industries.
"This marks the beginning of an exciting new chapter in our company's history and is a chance to become part of the strongest brands both Caterpillar and MaK in our industry," said Hakan Svensson, Berg's Chief Executive Officer. "Berg has proudly served the marine industry for 101 years, always striving to provide the best economical and environmentally sound customer solutions. We look forward to developing and providing an even greater portfolio of products and services for ship owners around the world."
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, pending final regulatory approvals.
For more than 85 years, Caterpillar Inc. has been making sustainable progress possible and driving positive change on every continent. With 2012 sales and revenues of $65.875 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 and Progress Rail Services. More information is available at: http://www.caterpillar.com.
Berg Propulsion is one of the world's leading designers and producers of Controllable Pitch Propellers for the shipping industry. Our strength lies in exceptional functional and technical expertise coupled with extensive industry knowledge. We deliver fully customized main propellers, azimuth thrusters, transverse thrusters and manoeuvre systems, and 24-hour service. Berg Propulsion operates from state-of-the-art production facilities in Sweden and Singapore, with sales and marketing offices in China (Shanghai and Guangzhou), Turkey, Dubai, Singapore, Germany, Spain, Brazil, Italy, West Africa, India, South Korea and the Swedish west coast. For more information, visit www.bergpropulsion.com.
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, fluctuations in demand for our products, 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) changes in interest rates or market liquidity; (ix) changes in financial services regulation; (x) inability to realize expected benefits from acquisitions, including ERA Mining Machinery Limited, and divestitures, including the divestiture of the Bucyrus International, Inc. (BUCY) distribution business to our independent dealers; (xi) international trade and investment policies; (xii) market acceptance of our products and services; (xiii) changes in the competitive environment, including market share, pricing and geographic and product mix of sales; (xiv) successful implementation of capacity expansion projects, cost reduction initiatives and efficiency or productivity initiatives, including the Caterpillar Production System; (xv) inventory management decisions and sourcing practices of our dealers or original equipment manufacturers; (xvi) compliance with environmental laws and regulations; (xvii) alleged or actual violations of trade or anti-corruption laws and regulations; (xviii) additional tax expense or exposure; (xix) currency fluctuations; (xx) our or Cat Financial's compliance with financial covenants; (xxi) increased pension plan funding obligations; (xxii) union disputes or other labor matters; (xxiii) significant legal proceedings, claims, lawsuits or investigations; (xxiv) compliance requirements imposed if carbon emissions legislation and/or regulations are adopted; (xxv) changes in accounting standards; (xxvi) failure or breach of information technology security; (xxvii) adverse effects of natural disasters; and (xxviii) other factors described in more detail under "Item 1A. Risk Factors" in our Form 10-K filed with the SEC (SCUR) on February 19, 2013 for the year ended December 31, 2012. This filing is available on our website at www.caterpillar.com/secfilings.
SOURCE Caterpillar Inc.