Barloworld to buy Russian Bucyrus unit
Limited (BAW) today announced that its subsidiary‚ Vostochnaya Technica UK Ltd‚ and Caterpillar Global Mining LLC have signed an agreement for Barloworld to acquire the Bucyrus mining equipment sales and support business in Barloworld’s service territories within the Siberian and Far East Regions of the Russian Federation.
The total transaction is valued at approximately US $50 million (R436 million) and will be funded by Barloworld using a combination of cash resources and existing borrowing facilities.
Upon completion of this transaction‚ Vostochnaya Technica LLC‚ the Barloworld Russian dealer‚ will begin to provide sales‚ service and support for all of the former Bucyrus mining products in its service territories within Russia.
The transaction‚ which is subject to customary closing conditions‚ is expected to close in December 2012‚ following which approximately 90 former Bucyrus employees and contract workers are expected to transition to Barloworld.
Clive Thomson‚ CEO of Barloworld said‚ “This acquisition‚ as was the case with the Bucyrus southern Africa transaction‚ is perfectly aligned with the group’s growth strategy. It builds on our existing strengths and will enhance our position in the mining industry by significantly expanding the range of equipment solutions‚ both surface and underground‚ we are able to provide to customers operating across our Russian service territory. The Bucyrus product line and installed base are a logical addition to our current range of Cat products and will provide us with significant opportunities for future growth with our mining customers. “
“We’re pleased to announce this agreement with Barloworld today as we continue to make good progress on our transition of the 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. “Barloworld and Caterpillar have enjoyed a long‚ outstanding relationship‚ and we look forward to realizing the growth opportunities created by this agreement.” - I-Net Bridge