Perkins In Engine Buy-Out
By Ian Cameron27 September 2018
After a 23-year relationship between Japan’s IHI Agri-Tech Corp. (IAT) and Perkins Engines Co. Ltd., a wholly owned subsidiary of Caterpillar Inc., Perkins and its affiliates have agreed to purchase IAT’s remaining share of the joint venture.
For over two decades, the joint venture has delivered a range of engines in the 0.5 to 2.2 L range. Manufactured in the UK, USA, China and Japan, there are currently more than a million Perkins 400 Series engines around the world, powering a range of off highway equipment.
The deal will see Perkins and its affiliates acquire IAT’s remaining share of the joint venture – the engines business of IAT which will include the transfer of some machining operations owned by IAT’s subsidiary based in Jiangsu Province, China and intellectual property for the 0.5 to 2.2 L engine range.
This initiative will streamline the business, improve responsiveness to changing customer needs, and enable innovation in commercial as well as technical offerings, Perkins said. It added that it will be working with customers of IAT’s engines business to provide continuity of products and services.
Perkins President Steve Ferguson said,“We see growth potential in compact engines to power small equipment such as mini excavators, generators, skid steer loaders and access platforms. Perkins is well positioned to be the professional partner to the world’s best-known industrial, machinery and electric power brands. This deal confirms our commitment to the sector and adds to our already significant investment in a full range of Perkins products to meet EU Stage 5 emissions standards.”
“Small engines are an integral offering in Perkins’ engine portfolio and we will continue to maximise customer value by offering cost competitive solutions,” he said.