WesTrac’s Chinese division will be sold to Lei Shing Hong Machinery for $540 million after parent company, Seven Group (SGH), secured a deal with the buyer.
In partnership with equipment manufacturer, Caterpillar, WesTrac has established strong relationships and a leading market presence since it was launched in China in 2001, Seven Group explained.
The sale will, however, allow Seven Group to reallocate capital into Australia, including investment into the local WesTrac business, according to Seven Group managing director and chief executive Ryan Stokes.
“WesTrac China has been a strong performing business for SGH and this is the right time to realise the value of what we have achieved,” Stokes said.
“SGH’s relationship with at remains one of our most important and enduring partnerships and we continue to be strong supporters of their dealership model.”
Stokes added that Seven Group would remain interested in any additional dealership opportunities with Caterpillar.