Caterpillar Completes Acquisition of MWM
PEORIA, Ill., Nov. 1, 2011 /PR Newswire/ -- Caterpillar Inc. (NYSE: CAT) today announced it has finalized the purchase of MWM Holding GmbH (MWM) from 3i and funds managed by 3i for euro 580 million (approximately $800 million). This action follows the European Commission's recent clearance of the transaction. MWM is a leading global supplier of sustainable, natural gas and alternative-fuel engines.
The acquisition of MWM will enable Caterpillar to significantly expand customer options for sustainable power generation solutions.
'The completion of the MWM acquisition represents the latest step in our strategic plan to aggressively grow our energy and power systems business,' said Gerard Vittecoq, Caterpillar group president with responsibility for Energy and Power Systems. 'More and more customers want a gas option for their engines. By combining our strengths in diesel and gas power generation with the technology and product strength of MWM, we are well positioned to be a lead provider in gas engine solutions for our customers.'
MWM will become part of Caterpillar's Electric Power Division, which supplies diesel and natural gas generator sets and integrated power systems involved in the generation, control and supply of electricity.
'The acquisition of MWM is a natural fit for Caterpillar and our electric power business. With the combination of the two companies' existing product ranges, Caterpillar is well positioned to meet our global customers' gas engine and power system solutions needs. By joining MWM's leading technology with Caterpillar's product support, we are uniting two strong companies that ensure we continue to be the leading innovator in our industry and the first choice for our customers,' said Bill Rohner, Caterpillar vice president with responsibility for Electric Power.
'The integration of MWM into Caterpillar is a very positive step for the company's future development, its employees, clients, distributors and business partners. Caterpillar provides the best prospects for MWM, given its worldwide network, which will open up new distribution and growth opportunities. Conversely, MWM's industry-leading products and expertise in decentralized, efficient and sustainable power generation will also represent a major enrichment to Caterpillar,' said Peter Grosch, who has elected to step down as chairman of MWM. Mr. Grosch will continue to support Caterpillar as integration advisor.
'We thank Peter for his service to MWM and appreciate his extraordinary contributions as chairman over the last four years. We look forward to working with Peter in his role as integration advisor, which will be key as we work to ensure a successful integration of the two organizations,' said Rohner.
Willy Schumacher will assume responsibility for MWM as managing director, reporting to Bill Rohner. MWM will remain headquartered in Mannheim, Germany.
For more than 85 years, Caterpillar Inc. has been making sustainable progress possible and driving positive change on every continent. With 2010 sales and revenues of $42.588 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services. More information is available at: http://www.caterpillar.com.
Certain statements in this press release relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to known and unknown factors that may cause Caterpillar's actual results to be different from those expressed or implied in the forward-looking statements. Words such as 'believe,' 'estimate,' 'will be,' 'will,' 'would,' 'expect,' 'anticipate,' 'plan,' 'project,' 'intend,' 'could,' 'should' or other similar words or expressions often identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, forecasts or trend descriptions. These statements do not guarantee future performance, and Caterpillar does not undertake to update its forward-looking statements.
It is important to note that Caterpillar's actual results may differ materially from those described or implied in its forward-looking statements based on a number of factors, including, but not limited to: (i) global economic conditions and economic conditions in the industries and markets Caterpillar serves; (ii) government monetary or fiscal policies and government spending on infrastructure; (iii) commodity or component price increases and/or limited availability of raw materials and component products, including steel; (iv) Caterpillar's and its customers', dealers' and suppliers' ability to access and manage liquidity; (v) political and economic risks associated with our global operations, including changes in laws, regulations or government policies, currency restrictions, restrictions on repatriation of earnings, burdensome tariffs or quotas, national and international conflict, including terrorist acts and political and economic instability or civil unrest in the countries in which Caterpillar operates; (vi) Caterpillar's and Cat Financial's ability to maintain their respective credit ratings, material increases in either company's cost of borrowing or an inability of either company to access capital markets; (vii) financial condition and credit worthiness of Cat Financial's customers; (viii) inability to realize expected benefits from acquisitions and divestitures, including the acquisition of Bucyrus International, Inc.; (ix) international trade and investment policies, such as import quotas, capital controls or tariffs; (x) the possibility that Caterpillar's introduction of Tier 4 emissions compliant machines and engines is not successful; (xi) market acceptance of Caterpillar's products and services; (xii) effects of changes in the competitive environment, which may include decreased market share, lack of acceptance of price increases, and/or negative changes to our geographic and product mix of sales; (xiii) union disputes or other employee relations issues; (xiv) Caterpillar's ability to successfully implement the Caterpillar Production System or other productivity initiatives; (xv) adverse changes in sourcing practices of our dealers or original equipment manufacturers; (xvi) compliance costs associated with environmental laws and regulations; (xvii) alleged or actual violations of trade or anti-corruption laws and regulations; (xviii) additional tax expense or exposure; (xix) currency fluctuations, particularly increases and decreases in the U.S. dollar against other currencies; (xx) failure of Caterpillar or Cat Financial to comply with financial covenants in their respective credit facilities; (xxi) increased funding obligations under our pension plans; (xxii) significant legal proceedings, claims, lawsuits or investigations; (xxiii) imposition of operational restrictions or compliance requirements if carbon emissions legislation and/or regulations are adopted; (xxiv) changes in accounting standards or adoption of new accounting standards; (xxv) adverse effects of natural disasters; and (xxvi) other factors described in more detail under 'Item 1A. Risk Factors' in Part I of our Form 10-K filed with the SEC on February 22, 2011 for the year ended December 31, 2010. This filing is available on our website at www.caterpillar.com/secfilings.
SOURCE Caterpillar Inc.
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