28 June 2012
BARLOWORLD EQUIPMENT AGREES TO ACQUIRE BUCYRUS SALES AND SUPPORT BUSINESSES
We are pleased to announce that Barloworld Equipment has reached agreement with Caterpillar Global Mining to acquire the Bucyrus sales and support businesses in South Africa and Botswana effective 2nd of July 2012 (“Closing”).
In addition, Caterpillar has assigned to Barloworld Equipment its agreements with Eqstra for the purchase of Eqstra’s Bucyrus mining services businesses in South Africa and Botswana.
Project teams from Caterpillar, Eqstra and Barloworld Equipment are working together to prepare for the transition and ensure a seamless transfer to Barloworld Equipment.
This landmark transaction follows Caterpillar’s acquisition of Bucyrus International, Inc. in July 2011 for approximately US$8.8 billion. As part of Caterpillar’s post-acquisition integration of the Bucyrus business, all legacy Bucyrus products are now or will in the future be Cat branded. In addition, Caterpillar has initiated a project to incorporate Caterpillar componentry into the new product range where this is deemed appropriate. The acquisition of the legacy Bucyrus sales and support business will provide Barloworld Equipment with the widest range of opencast mining equipment and an extensive suite of underground machines.
We do not plan to make sweeping changes to the management structures and customers will generally continue to deal with the same Bucyrus and Eqstra support teams as in the past. The quality of this support will be enhanced, over time, through access to Barloworld Equipment’s extensive distribution network, repair facilities, technical backup and world class training facilities.
With 2011 sales and revenues of US$60.1billion, Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives, reaching its global target markets via a network of 191 dealers.
At the time of the Bucyrus acquisition, Caterpillar announced that it planned to transition the Bucyrus OEM sales and distribution activities to Caterpillar dealers. Barloworld Equipment, which celebrates its 85th year as a Cat dealer in 2012, is the fifth dealer worldwide that has concluded this process.
Barloworld Equipment welcomes former Bucyrus and Eqstra Mining Services employees to our existing staff complement. Together we will now embark on an exciting journey to deliver world class value to Cat underground and surface mining customers across southern Africa.
The sales and support facilities formerly occupied by Bucyrus in southern Africa will be transferred to Barloworld Equipment and the businesses will continue to be run from these premises under the Barloworld Equipment banner. The Eqstra mining team currently based in Pomona will remain there initially after closure, but will relocate to suitable premises in due course.
New and existing customers have our assurance that preparations have been made to ensure a smooth transition.
We look forward to maintaining a mutually beneficial business partnership and will continue to keep you updated on developments.
Attached please find the detailed information pack, aimed at keeping customers in the picture and ensuring a seamless “go-live”. In the meantime, it’s business as usual.