Finning International has reached an agreement with Caterpillar to acquire part of its distribution and support business functions for $465m.
The distribution and support business, which covers parts of South America, western Canada and the UK, was formerly operated by Bucyrus. Upon completion of the sale, Finning intends to begin providing sales, service and support for former Bucyrus mining products in all of Finning’s dealership territories. The transaction is expected to be funded by US and Canadian dollar denominated term debt.
Go deeper with GlobalData
Finning International president and CEO Mike Waites said the acquisition provides an industry-leading product platform and sizeable Bucyrus machine population in the company’s resource-rich mining territories. "This acquisition adds new revenue opportunities and robust, long-term growth potential for our company and employees," added Waites.
The acquired distribution and support business, which has current annual revenues of about $600m, includes facilities and inventory primarily in South America and Canada, as well as approximately 900 former Bucyrus employees who are expected to transition to Finning upon the closing of the acquisition.
The two-phase transaction is expected to close in Finning South America and Finning UK and Ireland in the first quarter of this year, followed by Canada in the second quarter.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
