PEORIA, Ill., Jan. 31 /PRNewswire-FirstCall/ -- Caterpillar Inc.(NYSE: CAT) and Remy International, Inc. announced today that Caterpillar Inc. is acquiring certain assets of Franklin Power Products, Inc. (FPP) and International Fuel Systems, Inc. (IFS), subsidiaries of Remy International. The acquisition agreement was signed on January 31, 2007 . The deal is expected to close soon and is subject to the completion of legal and regulatory requirements.

Franklin Power Products is a leading remanufacturer of on-highway light-and medium-duty truck diesel engines and engine components. International Fuel Systems is a premium provider of remanufactured diesel engine components such as high pressure fuel pumps, fuel injectors and turbochargers.

"This acquisition represents an excellent strategic fit between Cat Reman and these two companies. It increases our overall product and service offering, and will provide a platform for future growth opportunities for Cat Reman," said Steve Fisher , Caterpillar vice president with responsibility for remanufacturing. "We intend to facilitate growth by applying our competencies of core management, salvage technology expertise and process efficiency improvement to Franklin Power Products and International Fuel Systems. This will help Cat Reman to improve our range of products and services offered to customers in the on-highway segment."

"Caterpillar recognizes the value of our terrific people and great product offerings at FPP and IFS, and the premium we place on customer relationships," said John Weber , President and CEO of Remy International, Inc. "Our customers should look forward to a smooth transition and continuing to be well served by Caterpillar."

With the acquisition of Franklin Power Products and International Fuel Systems, Cat Reman will be positioned as the leading diesel engine remanufacturer in North America with a full range of products and remanufacturing capabilities for automotive and light truck engines.