Caterpillar Inc. and Platinum Equity this week announced the completion of Platinum Equity’s acquisition of a majority interest in Caterpillar Logistics Services. Caterpillar will retain a 35-percent equity stake in the business. The overall transaction is valued at approximately $750 million.
Caterpillar Logistics Services is the third-party logistics division of Caterpillar’s wholly owned subsidiary, Caterpillar Logistics. Platinum intends to establish the business as a standalone company under a new brand to be announced at a later date.
“The sale of the third-party logistics business was driven by the strategic focus on the significant growth opportunities in our company’s core businesses,” said Steve Larson, vice president of Caterpillar and chairman and president of Cat Logistics. “We are very proud of the outstanding team that has delivered value to customers around the world for more than 25 years, and believe that in Platinum Equity we have picked the right partner to ensure strong growth and continued success for the business going forward.”
A team that includes Platinum in-house operations specialists is focused on transitioning the newly acquired business. A rebranding initiative is underway, and a new corporate name and image will be announced as that process unfolds.
“I look forward to expanding our service offerings and continuing to provide world class, innovative logistics solutions to our current and future clients," said Dan Spellman, president and chief operating officer of Caterpillar Logistics Services.
The sale does not impact Caterpillar manufacturing logistics and transportation operations or Cat-brand parts distribution. These services will continue as core businesses within Cat Logistics. As part of the sale to Platinum Equity, the divested third-party logistics business will continue to provide logistics services for non-Cat-branded parts including FG Wilson, Perkins, Solar, as well as for Caterpillar Japan.
Caterpillar is a 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.