Finning Int. acquires Caterpillar division for US$465 million
by The Canadian Press
The company has taken control of Bucyrus Int., a support and distribution business owned by Caterpillar
VANCOUVER—Finning International Inc. has bulked up its position in the mining industry after acquiring the distribution and support businesses of Bucyrus Intl. from Caterpillar for US$465 million.
The company, along with Caterpillar Inc., is taking control of the former Bucyrus Int. support businesses operated in South America, the U.K. and Western Canada.
Caterpillar acquired Bucyrus last July for $8.8 billion and has since been negotiating the sale of certain pieces of the business.
Last December, it sold its Australian operations to Caterpillar dealer Sime Darby for $360 million.
Finning will provide sales, service and support for former Bucyrus mining products.
The acquired distribution and support business has current annual revenues of about $600 million. It includes facilities and inventory in South America and Canada, and approximately 900 employees, who are expected to transition to Finning.
Finning International Inc. deals in Caterpillar equipment and sells, rents and service equipment and engine operations in Canada, Chile, Argentina, Bolivia and the U.K.