Caterpillar to Sell Majority of Caterpillar Logistics Services LLC, Construction Equipment

Caterpillar to Sell Majority of Caterpillar Logistics Services LLC.

Caterpillar will sell to Platinum Equity 65 percent of Caterpillar Logistics Services LLC, the third-party logistics division of Caterpillar Logistics, its wholly owned subsidiary. Caterpillar will retain a 35-percent equity stake.

The deal is valued at about $750 million and is set to close in the third quarter of 2012. “The sale of the third-party logistics business would be a key step in the execution of our enterprise strategy.

This event enables Caterpillar to increase its focus on our core business that aligns with our strategic business model,” said Stu Levenick, Caterpillar group president with responsibility for Customer & Dealer Support. “We believe the transaction with Platinum will set the third party logistics business on a path for continued growth and success.” Over the past 25 years, the third-party logistics business has provided logistics service to more than 50 customers worldwide in a number of different industries. As part of the agreement with Platinum, the third-party logistics business will continue to provide logistics services for non-Cat branded parts including FG Wilson, Perkins, Solar, as well as for Caterpillar Japan. Caterpillar says the proposed sale does not impact Caterpillar manufacturing logistics and transportation operations and Cat brand parts distribution; they will continue as core businesses within Cat Logistics. In fact, Caterpillar previously announced plans for a multiyear expansion and enhancement of the Cat parts distribution network, which, to date, has added over four million square feet of capacity in new parts distribution centers in the United States, Mexico and the United Arab Emirates.