Sime Darby buys Bucyrus distribution business
Posted on December 15, 2011, Thursday
KUALA LUMPUR: Caterpillar Inc yesterday announced Sime Darby Bhd (Sime Darby), via its industrial division, has acquired a portion of the former Bucyrus distribution business, which was included in Caterpillar’s Bucyrus purchase.
The US$360 million (RM1.1 billion) transaction encompassed Sime Darby Industrial Cat dealership operated by Hastings Deering in Queensland and Northern Territory of Australia, Papua New Guinea and New Caledonia.
“Cat dealers have a proven track record in helping customers realise the highest productivity and lowest owning and operating costs, and many mining customers have told us how important the dealers are to their success.
“Wherever there is mining, Caterpillar and our dealers will be there to serve our mining customers,” said Caterpillar Group president (resource industries) Steve Wunning in a statement yesterday.
This deal marked the first of several which were expected to transition product distribution and support for former Bucyrus machinery to Cat dealers who support mining customers worldwide.
Caterpillar also intended to start selling former Bucyrus mining products through Sime Darby’s other Cat dealerships.
Following Caterpillar’s Bucyrus’ acquisition, the company made two key strategic decisions; utilise the Cat brand, and dealers would be best suited to sell and support former Bucyrus mining products.
Hastings Deering, Sime Darby Industrial’s principal Australian subsidiary, had a significant field population of former Bucyrus machines in its territories.
As part of the deal, nearly 400 former Bucyrus employees were expected to transition to Hastings Deering, bringing the dealer’s total employment to over 4,000 employees, with a continued focus on providing uninterrupted service to customers.
“We are very excited to be the first Cat dealership to take on the former Bucyrus distribution business.
“The addition of former Bucyrus product line is a unique and exciting opportunity to grow Sime Darby Industrial’s presence in the region and offer mining customers an unparalleled range of products and services,” said Scott Cameron, Sime Darby’s executive vice-president, who heads Sime Darby Industrial Cat.
Caterpillar is currently holding discussions with other Cat dealers who have mining operations in their territories.
Caterpillar would continue to operate Bucyrus’ distribution business in a given dealer’s territory until the transitions have taken place. — Bernama