By Nathalie Tadena
Caterpillar Inc. (CAT) has agreed to sell a
distribution-and-support business to Hewitt Equipment Ltd. in the
province of Quebec, Western Labrador and the Maritimes, as the
company continues to shed distribution units from Bucyrus, which it
acquired last year.
The deal is expected to close April 1. Financial terms weren't
disclosed.
Caterpillar--the world's sales leader in bulldozers, excavators
and other earth-moving machinery--last year bought mining-equipment
manufacturer Bucyrus for about $7.6 billion, and since then has
made a series of deals to sell portions of that company's
distribution businesses.
Cat has said its long-held strategy has been for its dealers to
service and sell all its products. Since Bucyrus used a direct
model to sell and support products, Caterpillar said it would
transition that distribution-and-support system to dealers.
Hewitt Equipment is a Cat dealer for Quebec and Western Labrador
and its subsidiary, Atlantic Tractors & Equipment Ltd., is the
Cat dealer for the Maritimes.
Caterpillar said it continues to hold discussions with other Cat
dealers with mining activity in their territories.
Shares were up 0.8% to $81.59 in recent trading. The stock is
off 24% over the past three months.
Write to Nathalie Tadena at nathalie.tadena@dowjones.com
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