Caterpillar to Sell Bucyrus Distribution Business in Quebec

   By Nathalie Tadena 
 

Caterpillar Inc. (CAT) has agreed to sell a distribution-and-support business to Hewitt Equipment Ltd. in the province of Quebec, Western Labrador and the Maritimes, as the company continues to shed distribution units from Bucyrus, which it acquired last year.

The deal is expected to close April 1. Financial terms weren't disclosed.

Caterpillar--the world's sales leader in bulldozers, excavators and other earth-moving machinery--last year bought mining-equipment manufacturer Bucyrus for about $7.6 billion, and since then has made a series of deals to sell portions of that company's distribution businesses.

Cat has said its long-held strategy has been for its dealers to service and sell all its products. Since Bucyrus used a direct model to sell and support products, Caterpillar said it would transition that distribution-and-support system to dealers.

Hewitt Equipment is a Cat dealer for Quebec and Western Labrador and its subsidiary, Atlantic Tractors & Equipment Ltd., is the Cat dealer for the Maritimes.

Caterpillar said it continues to hold discussions with other Cat dealers with mining activity in their territories.

Shares were up 0.8% to $81.59 in recent trading. The stock is off 24% over the past three months.

Write to Nathalie Tadena at [e-mail]

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