Caterpillar and Finning In Reman Deal

Posted on March 29, 2006

Caterpillar Inc. and its dealer Finning International Inc. have announced that Cat and O.E.M. Remanufacturing Co. Inc., a subsidiary of Finning, have reached a remanufacturing agreement. The agreement calls for Caterpillar to acquire OEM Reman's rail and non-Cat engine component remanufacturing business, together with related work-in-progress and inventory.

In addition, Caterpillar and OEM Reman have agreed to enter into an initial two-year agreement under which OEM Reman will provide remanufacturing services for Caterpillar for these lines of business. Caterpillar will provide all sales and marketing functions and OEM Reman will perform the remanufacturing work for the initial term of the agreement.

The transaction does not affect the remanufacturing work that OEM Reman performs for Finning (Canada) on Cat branded equipment. OEM Reman will continue to perform remanufacturing services under a long-term contract for Finning (Canada) in support of customers in western Canada.