Finning to Acquire Caterpillar Distribution Unit

Will operate former Bucyrus distribution in South America, Canada, and the UK

Finning International, the world’s largest dealer of Caterpillar equipment, agreed to buy part of a distribution unit from the U.S. manufacturer for about $465 million. The business that Finning plans to acquire operates in South America, Canada, and the U.K. and was previously owned by Bucyrus International. 

A Finning slide presentation said the business it’s buying is forecast to have sales of about $700 million this year, up from about $600 million projected for 2011. Finning forecasts a profit margin before interest and tax of about 8% within two to three years.

Caterpillar, the world’s largest maker of construction and mining equipment, is selling the assets as part of its integration of Bucyrus. Cat bought Bucyrus for $8.6 billion in July.

(More on Finning's Caterpillar acquisition . . . )