Caterpillar to Sell Part of Bucyrus Distribution Business to Sime Darby Industrial
PEORIA, Ill., Dec. 13, 2011 /PRNewswire/ — Caterpillar Inc. (NYSE: CAT) announced today that the Industrial Division of Sime Darby Berhad (MK: SIME) has acquired a portion of the former Bucyrus distribution business, which was included in Caterpillar’s purchase of Bucyrus. The transaction, valued at approximately $360 million(subject to certain adjustments), encompasses the Sime Darby Industrial Cat dealerships operated by Hastings Deering in Queensland and the Northern Territory of Australia, Papua New Guinea and New Caledonia. This deal marks the first of several that are expected to transition the product distribution and support of former Bucyrus machinery to Cat dealers that support mining customers around the world. While not part of the transaction, Caterpillar also intends to start selling former Bucyrus mining products through Sime Darby’s other Cat dealerships.
Following Caterpillar’s acquisition of Bucyrus, the company made two key strategic decisions; utilize the Cat brand, and dealers would be best suited to sell and support former Bucyrus mining products.
“Cat dealers have a proven track record in helping customers realize the highest productivity and lowest owning and operating costs, and many mining customers have told us how important the dealers are to their success,” said Steve Wunning, Caterpillar group president with responsibility for Resource Industries. “Wherever there is mining, Caterpillar and our dealers will be there to serve our mining customers.”
Hastings Deering, the principal Australian subsidiary of Sime Darby Industrial, has a significant field population of former Bucyrus machines in its territories. As part of the deal, nearly 400 former Bucyrus employees are expected to transition to Hastings Deering, bringing the dealer’s total employment to over 4,000 employees with a continued focus on providing uninterrupted service to customers.
“We are very excited to be the first Cat dealership to take on the former Bucyrus distribution business,” said Scott Cameron, Sime Darby executive vice president who heads up Sime Darby Industrial. “The addition of the former Bucyrus product line is a unique and exciting opportunity to grow Sime Darby Industrial’s presence in the region and offer mining customers an unparalleled range of products and services.”
Caterpillar is currently holding discussions with other Cat dealers that have mining activity in their territories. Caterpillar will continue to operate the former Bucyrus distribution business in a given dealer’s territory until the transitions have occurred.
For more than 85 years, Caterpillar Inc. has been making sustainable progress possible and driving positive change on every continent. With 2010 sales and revenues of $42.588 billion, Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services. More information is available at: http://www.caterpillar.com.
About Sime Darby:
Sime Darby is a Malaysia-based diversified multinational involved in key growth sectors, namely, plantations, property, motors, industrial equipment, energy & utilities and healthcare. Founded in 1910, its business divisions seek to create positive benefits in the economy, environment and society where it has a presence.
With a workforce of over 100,000 employees in over 20 countries, Sime Darby is committed to building a sustainable future for all its stakeholders. It is one of the largest companies on Bursa Malaysia with a market capitalisation of RM54.8bn (USD17.5bn) as of 2 December 2011.
Sime Darby’s Industrial Division ranks amongst the largest Cat dealership groups, with more than 100 branches in 10 countries throughout the Asia Pacific region.
About Hastings Deering:
Hastings Deering is the Cat dealer in Queensland, Northern Territory, Papua New Guinea, Solomon Islands and New Caledonia and is a member of the Sime Darby Industrial Division.
With 22 branches throughout its Caterpillar territories, it will have almost 4,000 employees following this acquisition from Caterpillar.
Certain statements in this press release relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to known and unknown factors that may cause Caterpillar’s actual results to be different from those expressed or implied in the forward-looking statements. Words such as “believe,” “estimate,” “will be,” “will,” “would,” “expect,” “anticipate,” “plan,” “project,” “intend,” “could,” “should” or other similar words or expressions often identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, forecasts or trend descriptions. These statements do not guarantee future performance, and Caterpillar does not undertake to update its forward-looking statements.
It is important to note that Caterpillar’s actual results may differ materially from those described or implied in its forward-looking statements based on a number of factors, including, but not limited to: (i) global economic conditions and economic conditions in the industries and markets Caterpillar serves; (ii) government monetary or fiscal policies and government spending on infrastructure; (iii) commodity or component price increases and/or limited availability of raw materials and component products, including steel; (iv) Caterpillar’s and its customers’, dealers’ and suppliers’ ability to access and manage liquidity; (v) political and economic risks associated with our global operations, including changes in laws, regulations or government policies, currency restrictions, restrictions on repatriation of earnings, burdensome tariffs or quotas, national and international conflict, including terrorist acts and political and economic instability or civil unrest in the countries in which Caterpillar operates; (vi) Caterpillar’s and Cat Financial’s ability to maintain their respective credit ratings, material increases in either company’s cost of borrowing or an inability of either company to access capital markets; (vii) financial condition and credit worthiness of Cat Financial’s customers; (viii) inability to realize expected benefits from acquisitions and divestitures, including the acquisition of Bucyrus International, Inc.; (ix) international trade and investment policies, such as import quotas, capital controls or tariffs; (x) the possibility that Caterpillar’s introduction of Tier 4 emissions compliant machines and engines is not successful; (xi) market acceptance of Caterpillar’s products and services; (xii) effects of changes in the competitive environment, which may include decreased market share, lack of acceptance of price increases, and/or negative changes to our geographic and product mix of sales; (xiii) union disputes or other employee relations issues; (xiv) Caterpillar’s ability to successfully implement the Caterpillar Production System or other productivity initiatives; (xv) adverse changes in sourcing practices of our dealers or original equipment manufacturers; (xvi) compliance costs associated with environmental laws and regulations; (xvii) alleged or actual violations of trade or anti-corruption laws and regulations; (xviii) additional tax expense or exposure; (xix) currency fluctuations, particularly increases and decreases in the U.S. dollar against other currencies; (xx) failure of Caterpillar or Cat Financial to comply with financial covenants in their respective credit facilities; (xxi) increased funding obligations under our pension plans; (xxii) significant legal proceedings, claims, lawsuits or investigations; (xxiii) imposition of operational restrictions or compliance requirements if carbon emissions legislation and/or regulations are adopted; (xxiv) changes in accounting standards or adoption of new accounting standards; (xxv) adverse effects of natural disasters; and (xxvi) other factors described in more detail under “Item 1A. Risk Factors” in Part I of our Form 10-K filed with the SEC on February 22, 2011 for the year ended December 31, 2010. This filing is available on our website at www.caterpillar.com/secfilings.
SOURCE Caterpillar Inc.