Caterpillar has announced that it has signed an agreement for Platinum Equity to acquire a 65 percent equity stake in Caterpillar Logistics Services LLC, the third party logistics division of its wholly owned subsidiary, Caterpillar Logistics Inc. The transaction is valued at approximately $750 million. Under the terms of the agreement, Caterpillar would retain a 35 percent equity stake.
Platinum Equity Partner Jacob Kotzubei said the investment is a perfect fit for Platinum given the firm’s experience in executing carve-out transactions and operating logistics businesses. “We have a lot of experience owning and operating businesses that provide complex supply-chain solutions,” said Mr. Kotzubei. “We know what customers expect, and we share Cat Logistics’ commitment to the highest levels of service and dependability.”
Over the past 25 years, the third party logistics business has provided logistics service to more than 50 customers worldwide in a number of different industries. As part of the agreement with Platinum, the third party logistics business will continue to provide logistics services for non Cat branded parts including FG Wilson, Perkins, Solar, as well as for Caterpillar Japan. Platinum Equity invests in a range of industries including information technology, telecommunications, logistics, metals services, manufacturing and distribution. Platinum Equity has completed nearly 120 acquisitions with more than $27.5 billion in aggregate annual revenue at the time of acquisition. The firm is based in Beverly Hills, CA and also has offices in New York, NY and London, UK (www.platinumequity.com).
Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company also operates Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services. The company is headquartered in Peoria, IL (www.caterpillar.com).
