PEORIA, Ill. (AP) -- Caterpillar is selling its Bucyrus equipment business in South Africa and Botswana for about $115 million.
The sale, to Barloworld Ltd., includes agreements with Eqstra NH Equipment Ltd. and Eqstra Botswana Ltd. for the purchase of Eqstra's South Africa and Botswana Bucyrus distributorship and mining services businesses. That would push the total value of the deal to approximately $175 million, the companies said.
"(This acquisition) builds on our existing strengths and will enhance our leading position in the mining industry by significantly expanding the range of equipment solutions we are able to provide to customers operating across southern Africa," Barloworld CEO Clive Thomson said in a statement.
Barloworld distributes brands in various markets such as equipment and car rentals.
The deal with Barloworld is part of Caterpillar's strategy to transition product distribution and support of former Bucyrus machinery to Caterpillar dealers worldwide. The Peoria, Ill. company completed a similar transaction with Sime Darby Industrial and Finning International Inc. It also has deals in place with dealers including Finning International Inc., WesTrac Pty Ltd. and Ferreyros S.A.A.
The transaction with Barloworld, through Caterpillar Global Mining LLC, is expected to close in the third quarter, at which point about 470 Bucyrus and Eqstra workers are expected to move over to Barloworld.
Shares of Caterpillar Inc. fell $1.22 to $91.30 in premarket trading.