Cat To Buy MWM
Two days after announcing a 96% increase in third quarter profit, Caterpillar Inc. put some of that money to work announcing it has signed an agreement to acquire German engine manufacturer MWM Holding GmbH. Cat bought MWM, in an all cash deal, from the private equity investment company 3i, headquartered in London. The total transaction value is € 580 million ($810 million), Cat said.
The acquisition of 135-year old MWM, (Motoren-Werke Mannheim ) which was sold to 3i by Deutz AG in September, 2007 for € 360 million, ($500 million) will significantly increase its options for sustainable power generation solutions, Caterpillar said.
"MWM is recognized for its leading technology and product strength, particularly for its highly efficient range of engines, combined heat and power and trigeneration solutions capable of operating on a wide range of gaseous fuels including natural gas, biogas, mine gas and industrial waste gas," said Caterpillar CEO Doug Oberhelman. "This is a natural complement to Caterpillar's existing diesel and gas power generation business and demonstrates our commitment to continued investment in sustainable products and industries," Oberhelman added.
MWM will become part of Caterpillar's Electric Power Division (EPD), which supplies natural gas and diesel generator sets and integrated power systems involved in the generation, control and supply of electricity.
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