Platinum Equity to acquire majority stake in Caterpillar Logistics Services LLC
By Andrew SnookConstruction Trucks
Caterpillar Inc. will be selling its majority interest in Caterpillar Logistics Services LLC to Platinum Equity for approximately $750 million.
The Los Angeles, Calif.-based global mergers, acquisitions and operations firm will acquire a 65 per cent equity stake in Caterpillar Logistics Services, the third party logistics division of its wholly owned subsidiary, Caterpillar Logistics Inc.
Under the agreement, Caterpillar will retain a 35 per cent equity stake in the logistics company; and the third party logistics business will continue to offer logistics services to non-Cat branded parts; including FG Wilson, Perkins, and Solar, in addition to Caterpillar Japan.
Stu Levenick, Caterpillar group president with responsibility for customer and dealer support, stated that the sale enables Caterpillar to increase its focus on its core business, which aligns with its strategic business model.
The expected closing date for the transaction is the third quarter of 2012.