Thursday, August 2, 2012
CAT completes $750 mil majority interest sale of logistics unit
Caterpillar Inc. announced the sale of 65 percent of Caterpillar Logistics Services to Platinum Equity for approximately $750 million.
"The sale of the third party logistics business was driven by the strategic focus on the significant growth opportunities in our company's core businesses," said Steve Larson, vice president of Caterpillar and chairman and president of Cat Logistics, in a statement.
Caterpillar said it would retain a 35 percent equity stake in the logistics business that will be renamed by Platinum at a later date.
"We look forward to building on that tradition while establishing a new identity and propelling the company to new levels of success," said Platinum Equity Partner Jacob Kotzubei.
The sale won't impact Caterpillar's manufacturing logistics and transportation operations or CAT brand parts distribution, the company said.
"These services will continue as core businesses within CAT Logistics," the company said.
The divested third party logistics business will continue to provide services for non-CAT branded parts including FG Wilson, Perkins, Solar, as well as for Caterpillar Japan, according to the announcement.
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