Caterpillar sells part of Bucyrus distribution business to Hewitt Equipment
by Canadian Manufacturing Daily Staff with files from the Canadian Press
Deal involves Quebec, western Labrador and Maritime locations.
PEORIA, Ill.—Caterpillar Inc., has signed an agreement to sell its Bucyrus mining equipment distribution and support businesses in Quebec, western Labrador and the Maritimes to Hewitt Equipment Limited and its subsidiary, Atlantic Tractors & Equipment Ltd.
Based in Pointe-Claire, Que., Hewitt Equipment is Quebec and western Labrador’s authorized Cat dealer, while its subsidiary, Atlantic, sells Cat products in the Maritime provinces.
Jim Hewitt, president and chief executive office of Hewitt Equipment said company is looking to build on the existing Bucyrus support resources in its service territory.
“We are already making significant investments in facilities and in training to further strengthen that support capability. Further, as the transition takes place, we will be investing heavily in parts and component inventories to help ensure our customers attain optimal availability of their Cat and Bucyrus equipment.”
The deal is expected to close August 1, and no details were provided as to the value of the sale.
Caterpillar bought the mining equipment firm Bucyrus International Inc., for US$8.6 billion just over a year ago and has been selling off bits and pieces of the company to authorized Caterpillar dealers since. In January, the Edmonton-based Finning International Inc., bought the distribution and support businesses operating in South America, the U.K., and Western Canada for US$465 million. In December 2011, it sold the Bucyrus Australian operations to Sime Darby for US$360 million.
The company says it is holding similar discussions to sell its Bucyrus operations with other Caterpillar dealers with mining activities in their territories.
“Cat dealers play a pivotal role in helping us build and maintain our world-class system of distribution and product support. This is critical to providing value and solutions for Caterpillar mining customers, and Hewitt will be helping us achieve that,” said Steve Wunning, Caterpillar group president with responsibility for Resource Industries.