Caterpillar and Ariel Corporation Create Joint Venture to Provide Complete
Pressure-Pumping Solutions to Global Oil and Gas Customers
Joint venture acquires pump manufacturer ProSource of Houston, Texas
PEORIA, Ill. and MOUNT VERNON, Ohio, Dec. 5, 2012
PEORIA, Ill.and MOUNT VERNON, Ohio, Dec. 5, 2012 /PRNewswire/ --Caterpillar
Inc. (NYSE: CAT) and Ariel Corporation announced today the formation of a
50-50 joint venture that will provide well service pressure pumping products
for customers in the global oil and gas industry. The combined venture, Black
Horse LLC, also announced the acquisition of pump manufacturer ProSource of
Caterpillar is the world's leading manufacturer of diesel and natural gas
engines for the generation, control and supply of mechanical and electric
power for the marine and petroleum industries. Ariel Corporation is a global
leader in the design and manufacture of gas compressors. More than 40,000
Ariel compressors are currently in use throughout the global energy industry
to extract, process, transport, store and distribute natural gas from the
wellhead to the end-user.
The acquisition of ProSource, which designs and manufactures reciprocating
pressure pumps, enables Black Horse LLC to serve the well service market.
Black Horse LLC will leverage Caterpillar and Ariel engineering and
manufacturing expertise to expand ProSource's existing product line to better
serve global oil and gas customers. Frac pumps sold through the combined
venture will be branded and sold under the Cat name and distributed through
the Cat dealer network.
"We are thrilled to partner with Ariel to bring our petroleum customers not
just a partial solution, but a complete package," said Tom Frake, Caterpillar
vice president with responsibility for Marine and Petroleum Power. "Together,
with the support of our Cat dealer network, we can provide not only a complete
pressure-pumping solution, but also the global parts and service support to
maximize up-time throughout the world. This deal significantly improves our
capability to meet our oil and gas customers' needs for reliable, sustainable
Under the arrangement, executives from Caterpillar's Marine and Petroleum
Power Division and Ariel Corporation will jointly lead Black Horse LLC.
"Ariel has built an outstanding reputation by employing technology to provide
high-quality, innovative products backed by world-class customer support.
Caterpillar has done exactly the same," said Karen Buchwald Wright, Ariel's
president and chief executive officer. "This partnership brings together two
companies with the same strong values and commitment to customers' success.
It's an exciting, new chapter for both of us."
The joint venture and integration of ProSource will result in important
synergies, including leveraging the companies' existing product ranges,
advanced technologies, research and development resources, and manufacturing,
distribution and customer support capabilities.
Black Horse LLC is headquartered in Houston, Texas.
For more than 85 years, Caterpillar Inc. has been making sustainable progress
possible and driving positive change on every continent. With 2011 sales and
revenues of $60.138 billion, Caterpillar is the world's leading manufacturer
of construction and mining equipment, diesel and natural gas engines,
industrial gas turbines and diesel-electric locomotives. The company also is a
leading services provider through Caterpillar Financial Services, Caterpillar
Remanufacturing Services and Progress Rail Services. More information is
available at: http://www.caterpillar.com.
Established in 1966, and headquartered in Mount Vernon, OH, Ariel Corporation
is the world's largest manufacturer of separable reciprocating gas compressors
utilized by the global energy industry to extract, process, transport, store,
and distribute natural gas from the wellhead to the end-user. Ariel also
produces specialized API-618 reciprocating compressors for the process
industry. As a world-class manufacturer, Ariel sets the industry standard
through industry-leading research & development, expert design &
manufacturing, and unmatched customer support. More information is available
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(vii)the financial condition and credit worthiness of Cat Financial's
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divestitures, including the acquisition of Bucyrus International, Inc.;
(ix)international trade and investment policies; (x)challenges related to
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disputes or other employee relations issues; (xxii)significant legal
proceedings, claims, lawsuits or investigations; (xxiii)compliance
requirements imposed if carbon emissions legislation and/or regulations are
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security; (xxvi)adverse effects of natural disasters; and (xxvii)other
factors described in more detail under "Item 1A. Risk Factors" in our
Form10-K filed with the SEC on February21, 2012 for the year ended
December31, 2011. This filing is available on our website at
SOURCE Caterpillar Inc.
Contact: Bridget M. Young, Global Government & Corporate Affairs, Caterpillar,
+1-309-675-8463, Young_Bridget_M@cat.com; or Kent E. Dubbe, VP - Human
Resources & Org Development, Ariel, +1-740-397-0311
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