Caterpillar Inc. has signed an agreement with investment firm 3i to acquire MWM Holding GmbH, a leading global supplier of highly sustainable alternative engines.
The total transaction value amounts to €580 million (approximately $810 million) and will be paid in cash.
Headquartered in Mannheim, Germany, MWM (Motoren-Werke Mannheim) has over 135 years of experience in the development and optimization of combustion engines for natural gas, special gases and diesel, and the acquisition will significantly expand Caterpillar’s customer options for sustainable power generation solutions.
"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."
3i has owned MWM for the last three years, during which time it has developed and implemented a number of strategic and operational improvement initiatives and made significant investments in its production facilities, research and development platform and distribution network.
"We highly appreciate 3i's support and believe that Caterpillar provides the best prospects for the next step of our development, given its worldwide network which will open up new distribution and growth opportunities to us," said Peter Grosch, chairman of MWM.
"Beyond our accomplished mission of transforming MWM's positioning, we strongly believe in the long-term success of the company under Caterpillar's ownership," said Peter Wirtz, partner and managing director of 3i Germany.
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. EPD operates in more than 50 locations around the world.
"The gas engines industry is a great fit for Caterpillar's energy and electric power systems business,” said Bill Rohner, Caterpillar vice president with responsibility for Electric Power. “Together with the two companies' premium products, technology and global distribution network, our comprehensive offerings will deliver sustainable power system solutions for our global customers."
The acquisition is expected to close in the coming months, pending final regulatory approvals.
