Caterpillar Completes Bucyrus Acquisition

Driven by a key strategic imperative to expand its leadership and support for customers in the mining industry, Caterpillar Inc. announced it has completed its acquisition of Bucyrus International, Inc. Caterpillar funded the acquisition, valued at approximately $8.8 billion (including net debt), using cash from its balance sheet and debt. The company did not issue equity to help fund the transaction.

To watch a related video on Cat Mining and the Bucyrus acquisition click here.

Caterpillar Group President Steve Wunning will have executive office accountability for Caterpillar's Global Mining business, including Bucyrus.

"We are pleased to complete this acquisition and are proud to welcome Bucyrus employees to Caterpillar," Wunning says. "We are bringing together the best people, the best products and the best facilities from both companies. This acquisition is all about growth and unprecedented opportunities. Combined with our aggressive product development and capacity expansion plans, it will position Caterpillar to offer a broad range of surface and underground mining products and solutions to our customers," Wunning adds. "The rapid development of the world's emerging markets is expected to continue to drive an increasing need for commodities as billions of people around the world seek to improve their standard of living. Wherever there is mining, Caterpillar and our dealers will be there to serve our mining customers," Wunning adds.

Since announcing the acquisition last November, Caterpillar's been busy planning to bring Bucyrus into the Caterpillar family. A dedicated team has been working on the integration plans and is excited to begin implementation. As part of the integration process, the company is pleased to report on the following key areas – organization structure, branding and distribution, synergy benefits, and funding.

Organization Structure

As previously announced, the Caterpillar Global Mining headquarters will be in Oak Creek, WI and will include three mining divisions reporting to Steve Wunning.  

• Caterpillar Vice President Dave Bozeman will lead the Integrated Manufacturing Operations Division, which will include the global manufacturing operations for Caterpillar mining products. The division has manufacturing operations in Asia, Australia, Europe and North America.  
• Caterpillar Vice President Chris Curfman will lead the Mining Sales and Marketing Division, with global responsibility for maintaining and enhancing customer relationships, developing the global marketing strategy and ensuring future growth opportunities.
• Luis de Leon, previously chief operating officer for Bucyrus, has been elected by the Caterpillar Board of Directors as a corporate Vice President, and will lead the new Mining Products Division. The division will be responsible for overall mining product strategy development, product design and product sourcing.

In addition, several other Caterpillar divisions will provide critical support to the mining business. These divisions include the Large Power Systems Division, Advanced Components & Systems Division, Remanufacturing & Components Division, Parts Distribution & Logistics Division and Global Purchasing Division.  

Branding

For the past several months, Caterpillar has evaluated the best approach for branding legacy Bucyrus products. The company sought input from dealers, customers, the leadership of Bucyrus and outside industry and branding experts. The conclusion was a single brand— Caterpillar— for mining products.