Caterpillar has announced the finalisation of its Bucyrus acquisition.
The $8.8 billion buy was welcomed by Caterpillar, with the company saying it can now offer a broader range of surface and underground mining products and solutions.
It planned to fund the acquisition through a combination of debt, around $2 billion in equity, and cash.
However due to a stronger cash flow and balance sheet, it did not need to issue equity; instead issuing $4.5 billion in new debt.
Cat stated that since the acquisition was announced in November last year, it has focused on integrating Bucyrus to expand its mining division.
It will now brand all Bucyrus vehicles as Cat, group president Steve Wunning explaining that “as we examined this issue, it became clear it would be in the best long-term interests of our business to have a single brand for our mining customers, and that brand will be Caterpillar. This decision is important to quickly bring together one team with a single face to our customers, and was endorsed by the Bucyrus Board of Directors, and we will begin to transition Bucyrus products to the Caterpillar brand in a quick and orderly fashion.”
Cat has also changed Bucyrus’ distribution model, and will now sell and service the mining equipment through its dealer network.
“This announcement marks the beginning of a new era in Caterpillar’s mining business,” Wunning said.
“The joining of these two iconic companies is an incredible combination. It positions us for long-term success in an industry with significant growth potential, and we intend to fully leverage our unique strengths to help the mining industry.”