Cat, Ariel Form Oil & Gas JV
Caterpillar Inc. and Ariel Corp. have announced the formation of a 50-50 joint venture called Black Horse LLC, to be headquartered in Houston, Tex. The two companies said the new JV will provide well service pressure pumping products for the global oil and gas industry. The combined venture also announced the acquisition of pump manufacturer ProSource also in Houston.
The acquisition of ProSource, which designs and manufactures reciprocating pressure pumps, enables Black Horse LLC to serve the well service market. Black Horse LLC will leverage Caterpillar and Ariel engineering and manufacturing expertise to expand ProSource's existing product line to serve global oil and gas customers. Frac pumps sold through the combined venture will be branded and sold under the Cat name and distributed through the Cat dealer network.
Under the arrangement, executives from Caterpillar's Marine and Petroleum Power Division and Ariel Corporation will jointly lead Black Horse LLC.
"We are thrilled to partner with Ariel to bring our petroleum customers not just a partial solution, but a complete package," said Tom Frake, Caterpillar vice president with responsibility for Marine and Petroleum Power. "Together, with the support of our Cat dealer network, we can provide not only a complete pressure-pumping solution, but also the global parts and service support to maximize up-time throughout the world. This deal significantly improves our capability to meet our oil and gas customers' needs for reliable, sustainable power."
"This partnership brings together two companies with the same strong values and commitment to customers' success. It's an exciting, new chapter for both of us," said Karen Buchwald Wright, Ariel's president and chief executive officer.