WesTrac has announced it has reached an agreement with Caterpillar to acquire the distribution and support businesses formerly operated by Bucyrus in Western Australia, NSW, and Canberra.
The transaction, valued at around US $400 million, will be funded through a five year debt facility.
It comes after Caterpillar fully acquired Bucyrus last year for US $8.8 billion.
WesTrac is the main distributor for Cat equipment in Australia.
The Australian company will immediately begin providing sales, service and support for former Bucyrus mining products in WA, NSW, and the ACT following the closure of the agreement, which is expected by 30 June.
WesTrac estimates annual revenues for the business to be between $600 million and $650 million for the 2013 financial year.
The company says it will employ around 430 former Bucyrus employees and contractors.
Jim Walker, WesTrac’s CEO, said "the acquisition of the Bucyrus distribution and support business will enhance our position in the supply and service of heavy equipment to the mining and construction sectors in WA, NSW, and the ACT.
"The Bucyrus product line and large installed base are a logical addition to our current range of Cat products, and will provide us with significant opportunities for future growth with our mining customers."
Caterpillar Group president for resources industries, Steve Wunning, said the company was pleased with the move.
"We are pleased to announce this agreement with WesTrac today as we continue to make excellent progress in the transition of the product distribution and support of former Bucyrus machinery to Cat dealers around the world."
WesTrac and Cat are continuing discussions in raged to Bucyrus’ distribution and support businesses in North Eastern China, the two stating that an announcement will soon be made in regards to this region.
This acquisition will add another 148 products to WesTrac’s range, such as electric rope shovels, draglines, drills, hydraulic shovels, underground mining equipment, and highwall miners.