Caterpillar and Ferreyros S.A.A. have reached an agreement for Ferreyros to acquire from Caterpillar the distribution and support business formerly operated by Bucyrus in Peru. After closing, Ferreyros expects to begin providing sales, service and support for former Bucyrus mining products in all of Ferreyros’ dealership territories. The transaction is valued at about US$75 million.
“Our agreement with Ferreyros marks the next step in our journey to transition 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. “We’re making good progress on our journey, ensuring that wherever there is mining, Caterpillar and our dealers will be there to serve our mining customers.”
The acquired distribution and support business includes inventory in Peru as well as about 70 former Bucyrus employees who are expected to transition to Ferreyros upon closing of the transaction.
Caterpillar continues to hold discussions with other Cat dealers that have mining activity in their territories and will continue to operate the former Bucyrus distribution business until the transitions have occurred in a given territory. In addition to the agreement with Ferreyros, Caterpillar closed the transaction with Sime Darby Industrial in the fourth quarter of 2011 and has announced agreements with Finning International and WesTrac Pty Limited.