CAT To Sell Logistics Unit Stake For $750M
PEORIA, Ill. (AP) — Caterpillar is selling a majority stake in a logistics division for about $750 million to better focus on its core businesses.
The world's largest maker of construction and mining equipment said Thursday that it is selling a 65 percent interest in Caterpillar Logistics Services LLC, a third-party logistics unit of Caterpillar Logistics Inc., to Platinum Equity.
Caterpillar, based in Peoria, Ill., will keep a 35 percent interest in the business.
Caterpillar Logistics Services continue to provide logistics services for non-Caterpillar branded parts including FG Wilson, Perkins, Solar, as well as for Caterpillar Japan.
The sale won't impact its manufacturing logistics and transportation operations and Cat brand parts distribution, the company said.
The deal is expected to close in the third quarter.
Last month Caterpillar reported that its first-quarter profit climbed 29 percent and it boosted its outlook for the year as U.S. builders replaced old gear and global demand for mining equipment boomed.
Shares of Caterpillar Inc. added $1.01 to $97 in morning trading.