Barloworld Latest To Buy Bucyrus Aftersales Biz
Caterpillar Inc. has announced that Caterpillar Global Mining LLC and Barloworld Ltd., have signed an agreement for Barloworld to acquire the Bucyrus equipment distribution and support business in South Africa and Botswana. The transaction is valued at approximately $115 million.
In addition, Caterpillar Global Mining has assigned to Barloworld its agreements with Eqstra NH Equipment (Pty) Ltd. and Eqstra Botswana (Pty) Ltd., for the purchase of Eqstra’s South Africa and Botswana Bucyrus distributorship and mining services businesses. For Barloworld, the total transaction, including the former Eqstra mining services businesses, is valued at approximately $175 million.
To date, Caterpillar has closed similar transactions with Sime Darby Industrial and Finning International Inc. (for portions of the Bucyrus distribution and support business in South America and the U.K.). The company has also announced deals with three other dealers including Finning International Inc. (for portions of the Bucyrus distribution and support business in Canada), WesTrac Pty Limited and Ferreyros S.A.A.
Subject to customary closing conditions and required regulatory approvals, it is anticipated that the transaction will close in the third quarter of 2012. Following completion of the acquisition, approximately 470 former Bucyrus and Eqstra employees and contract workers are expected to transition to Barloworld.
Discussions are continuing between the companies in relation to the former Bucyrus distribution and support businesses in the Barloworld dealership territories in Russia and Iberia.
Caterpillar said it 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.