Finning to purchase portion of Bucyrus distribution business from Caterpillar
By Andrew SnookConstruction Equipment Financing
Finning International Inc. has added to its Caterpillar equipment distribution and support business by acquiring a portion of the business formerly owned by Bucyrus.
Caterpillar and Finning both announced the agreement on Jan. 18, valued at approximately US$465 million.
Finning is purchasing a portion of the business formerly operated by Bucyrus in areas of South America and Western Canada and in the U.K.
The Vancouver-based, Caterpillar equipment dealer operates in Western Canada, Chile, Argentina, Bolivia, Uruguay, Ireland and the U.K.
Finning plans to provide sales, service and support for former Bucyrus mining products in all of its dealership territories as soon as the deal is closed.
The company’s purchase of the distribution and support business includes facilities and inventory mainly in South America and Canada, and approximately 900 former Bucyrus employees who are expected to transition to Finning after the deal is finalized.
The deal is expected to close in two phases: in Finning South America and Finning U.K. late in the first quarter of 2012 and in Canada in the second quarter of 2012.
The distribution and support business purchased by Finning has current annual revenues of approximately US$600 million.