Caterpillar Global Mining and South Africa-based equipment distributor Barloworld Ltd. have signed an agreement for Barloworld to acquire the Bucyrus equipment distribution and support business in South Africa and Botswana. The transaction between Caterpillar and Barloworld is valued at approximately $115 million. In addition, Cat Global Mining assigned to Barloworld its agreements with Eqstra NH Equipment and Eqstra Botswana for the purchase of Eqstra’s South Africa and Botswana Bucyrus distributorship and mining services businesses. For Barloworld, the total transaction, including the former Eqstra mining services businesses, is valued at approximately $175 million.
Subject to customary closing conditions and required regulatory approvals, it is anticipated that the transaction will close in the third quarter of 2012.
Upon completion of these transactions, 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. Approximately 470 former Bucyrus and Eqstra employees and contract workers are expected to join Barloworld.
Discussions are continuing between the companies in regard to the former Bucyrus distribution and support businesses in the Barloworld dealership territories in Russia and Iberia.
To date, Caterpillar has closed similar transactions with Sime Darby Industrial and Finning International (for portions of the Bucyrus distribution and support business in South America and the U.K.). The company has also announced deals with three other dealers including Finning International (for portions of the Bucyrus distribution and support business in Canada), WesTrac and Ferreyros S.A.A.
