South Africa’s Barloworld has agreed to acquire the Bucyrus equipment distribution and support business in South Africa and Botswana from Caterpillar Global Mining.
The deal, which is valued at approximately $115 million, will also see Barloworld take over Caterpillar’s agreements with Eqstra NH Equipment and Eqstra Botswana for the purchase of Eqstra’s South Africa and Botswana Bucyrus distributorship and mining services businesses.
For Barloworld, the total transaction, including the former Eqstra mining services businesses, is valued at approximately $175 million. Upon completing the deal, the South African company expects to begin providing sales, service and support for all of the former Bucyrus mining products in all its dealership territories in southern Africa.
Founded in 1902, Barloworld currently has operations in 27 countries around the world, with approximately 60 per cent of its 19,000 employees in South Africa. The company is a distributor of leading international brands providing integrated rental, fleet management, product support and logistics solutions.
Barloworld’s core divisions comprise Equipment (earthmoving and power systems); Automotive and Logistics (car rental, motor retail, fleet services, used vehicles and disposal solutions, logistics management and supply chain optimisation); and Handling (materials handling and agriculture).
Commenting on the deal, Clive Thomson, CEO of Barloworld, said: “This acquisition is perfectly aligned with the group’s growth strategy. It 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.”
Steve Wunning, Caterpillar group president with responsibility for Resource Industries, commented: “We’re pleased to announce this agreement today as we continue to make good progress on our transition of the product distribution and support of former Bucyrus machinery to Cat dealers around the world,” said. “Barloworld and Caterpillar have a longstanding relationship, and we look forward to realizing the growth opportunities created by this agreement.”
Following completion of the acquisition, approximately 470 former Bucyrus and Eqstra employees and contract workers are expected to transition to Barloworld. Discussions are continuing between the companies in relation to the former Bucyrus distribution and support businesses in the Barloworld dealership territories in Russia and Iberia.
