CHICAGO Australias WesTrac Pty. Ltd. has agreed to pay Caterpillar Inc. $400 million for the distribution and support business formerly operated by Bucyrus International Inc. in Western Australia, Australian Capital Territory and New South Wales.
"We continue to make excellent progress in the transition of the product distribution and support of former Bucyrus machinery to Cat dealers around the world," Steve Wunning, Caterpillars resource industries group president, said in a statement. "Through our longstanding relationship with WesTrac, we look forward to working together to deliver the best equipment solutions in the industry to our mining customers."
"The Bucyrus product line and large 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," WesTrac chief executive officer Jim Walker said.
The transaction is expected to close by June 30, at which point about 430 former Bucyrus employees and contractors will be working for WesTrac.