Press release from PR Newswire
Caterpillar to Sell Part of Bucyrus Distribution Business to Cat Dealer Hewitt Equipment Limited and Atlantic Tractors & Equipment Ltd.
Monday, July 23, 2012
Caterpillar to Sell Part of Bucyrus Distribution Business to Cat Dealer Hewitt Equipment Limited and Atlantic Tractors & Equipment Ltd.14:00 EDT Monday, July 23, 2012Transition to Hewitt to provide broad and unmatched support to mining customersPEORIA, Ill., July 23, 2012 /PRNewswire/ -- Caterpillar Inc. (NYSE: CAT) and Hewitt Equipment Limited (Hewitt) today announced that Caterpillar Global Mining LLC and Hewitt Equipment Limited have signed an agreement for Hewitt and its subsidiary, Atlantic Tractors & Equipment Ltd. (Atlantic), to acquire the Bucyrus equipment distribution and support business in the province of Quebec, Western Labrador and the Maritimes. "Cat dealers play a pivotal role in helping us build and maintain our world-class system of distribution and product support. This is critical to providing value and solutions for Caterpillar mining customers, and Hewitt will be helping us achieve that," said Steve Wunning, Caterpillar group president with responsibility for Resource Industries."We are very enthusiastic about this agreement, under which we will provide an even broader product offering to our valued mining customers," said Jim Hewitt, president and chief executive officer of Hewitt. "We look forward to collaborating with Caterpillar and with our customers as we work together to build on the existing Bucyrus support resources in our service territory. We are already making significant investments in facilities and in training to further strengthen that support capability. Further, as the transition takes place, we will be investing heavily in parts and component inventories to help ensure our customers attain optimal availability of their Cat and Bucyrus equipment. We also look forward to welcoming the former Bucyrus employees who will be joining the Hewitt Team." Subject to customary closing conditions, it is anticipated that the transaction will close on August 1.Caterpillar has announced similar transactions with other dealers over the last several months. Caterpillar continues to hold discussions with other Cat dealers that have mining activity in their territories and will continue to operate the former Bucyrus distribution business until the transitions have occurred in a given territory. About Caterpillar:For more than 85 years, Caterpillar Inc. has been making sustainable progress possible and driving positive change on every continent. With 2011 sales and revenues of $60.138 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. About Hewitt:Hewitt Equipment Limited is the authorized Cat Dealer for the province of Quebec and Western Labrador, and through its subsidiary, Atlantic Tractors & Equipment Ltd. is also the Cat Dealer for the Maritime provinces. With headquarters in Pointe-Claire and 45 branches, the Hewitt Group sells, rents and services the full line of Caterpillar products through five divisions: Heavy Equipment, Material Handling, Energy, Truck and Agricultural. Hewitt's other subsidiaries are: Hewitt Material Handling Inc. (Ontario), Hewitt Rentals Inc. (Quebec, Western Labrador and Maritimes), Montreal Hydraulique 04 Inc. and SITECH Atlantic Ltd. (Maritimes). More information is available at: http://www.hewitt.ca/en/ and http://www.atlcat.ca/. Forward-Looking StatementsCertain 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. 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 we do not undertake to update our forward-looking statements. Caterpillar's actual results may differ materially from those described or implied in our 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 we serve; (ii) government monetary or fiscal policies and infrastructure spending ; (iii) commodity or component price increases and/or limited availability of raw materials and component products, including steel; (iv) our and our customers', dealers' and suppliers' ability to access and manage liquidity; (v) political and economic risks and instability, including national or international conflicts and civil unrest; (vi) our and Cat Financial's ability to: maintain credit ratings, avoid material increases in borrowing costs, and access capital markets; (vii) the 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; (x) challenges related to Tier 4 emissions compliance; (xi) market acceptance of our products and services; (xii) changes in the competitive environment, including market share, pricing and geographic and product mix of sales; (xiii) successful implementation of capacity expansion projects, cost reduction initiatives and efficiency or productivity initiatives, including the Caterpillar Production System; (xiv) sourcing practices of our dealers or original equipment manufacturers; (xv) compliance with environmental laws and regulations; (xvi) alleged or actual violations of trade or anti-corruption laws and regulations; (xvii) additional tax expense or exposure; (xviii) currency fluctuations; (xix) our or Cat Financial's compliance with financial covenants; (xx) increased pension plan funding obligations; (xxi) union disputes or other employee relations issues; (xxii) significant legal proceedings, claims, lawsuits or investigations; (xxiii) compliance requirements imposed if carbon emissions legislation and/or regulations are adopted; (xxiv) changes in accounting standards; (xxv) failure or breach of IT security; (xxvi) adverse effects of natural disasters; and (xxvii) other factors described in more detail under "Item 1A. Risk Factors" in our Form 10-K filed with the SEC on February 21, 2012 for the year ended December 31, 2011. This filing is available on our website at www.caterpillar.com/secfilings. SOURCE Caterpillar Inc.For further information: Caterpillar, Bridget M. Young, Corporate Public Affairs, +1-309-675-8463, firstname.lastname@example.org; or Hewitt, William Harvey, General Manager, Mining, Hewitt Equipment Limited, +1-514-630-3254, WHarvey@hewitt.ca