Caterpillar Inc. announced it plans to sell a distribution and support business in Peru to Caterpillar dealer Ferreyros S.A.A. for $75 million.
The business was formerly operated by South Milwaukee-based mining equipment manufacturer Bucyrus International before Peoria, Ill.-based Caterpillar acquired Bucyrus on July 8.
“Our agreement with Ferreyros marks the next step in our journey to transition 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. “We’re making good progress on our journey, ensuring that wherever there is mining, Caterpillar and our dealers will be there to serve our mining customers.”
Inventory remaining in Peru and about 70 former Bucyrus employees are expected to make the transition to Ferreyros.
“This acquisition represents a unique opportunity to bring together the best products, specialists and capacities to offer our mining customers throughout Peru the broadest spectrum of solutions to increase the efficiency of their operations,” said Mariela Garcia de Fabbri, general manager of Ferreyros. “The acquisition will allow us to better serve our customers through one contact point with the support of the Caterpillar worldwide network.
Caterpillar plans to keep talking to dealers who have mining activity in their territories to transition the Bucyrus distribution business.
