Summary
Caterpillar Inc. (CAT) announced on December 19, 2002, the divestiture of its rubber-belted track component business to Camoplast, a Quebec-based company specializing in rubber tracks. This business unit, which manufactures components for Caterpillar's Mobil-trac™ systems used in agricultural, construction, and defense applications, will be acquired by Camoplast, along with Caterpillar's manufacturing facility in Emporia, Kansas. While Caterpillar acknowledges the historical success and leadership of this business, the divestiture is deemed a strategic alignment after the 2001 sale of its Challenger line of farm tractors, for which these components were primarily used. Camoplast will continue to supply these components to Caterpillar for its branded equipment and for aftermarket support by Caterpillar dealers, ensuring continued product availability for customers. The transaction is expected to close by December 30, 2002, with financial terms undisclosed.
Key Highlights
- 1Caterpillar is selling its rubber-belted track component business to Camoplast.
- 2The sale includes Caterpillar's manufacturing facility in Emporia, Kansas.
- 3Camoplast will continue to supply these components to Caterpillar for use in Mobil-trac™ systems and for aftermarket support.
- 4The divestiture is a strategic move for Caterpillar following the sale of its Challenger tractor line in 2001.
- 5Camoplast intends to maintain operations at the Emporia facility and retain its employees.
- 6The transaction is anticipated to close on December 30, 2002.
- 7Financial terms of the acquisition were not disclosed.