Caterpillar Global Mining will sell the Bucyrus equipment distribution and support business in South Africa and Botswana to Barloworld for approximately $115 million.
Caterpillar has also assigned to Barloworld its agreements with Eqstra NH Equipment (Pty) Limited and Eqstra Botswana (Pty) Limited (together referred to as ‘Eqstra’) for the purchase of Eqstra’s South Africa and Botswana Bucyrus distributorship and mining services businesses.
“We’re pleased to announce this agreement today as we continue to make good progress on our transition of the product distribution and support of former Bucyrus machinery to Cat dealers around the world,” said Steve Wunning, Caterpillar group president with responsibility for Resource Industries. “Barloworld and Caterpillar have a longstanding relationship, and we look forward to realizing the growth opportunities created by this agreement.”
Clive Thomson, CEO of Barloworld said, “This acquisition is perfectly aligned with the group’s growth strategy. It builds on our existing strengths and will enhance our leading position in the mining industry by significantly expanding the range of equipment solutions we are able to provide to customers operating across southern Africa.”
Subject to customary closing conditions and required regulatory approvals, it is anticipated that the transaction will close in the third quarter of 2012. At that point, Barloworld expects to begin providing sales, service and support for all of the former Bucyrus mining products in all its dealership territories in southern Africa.
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.