Caterpillar to Acquire MWM Holding for $806 Million
Caterpillar Inc., the world’s largest maker of construction and mining equipment, agreed to buy MWM Holding GmbH from 3i Group Plc.
Caterpillar will purchase the Mannheim, Germany-based manufacturer of combustion engines for 580 million euros ($806 million), the Peoria, Illinois-based company and London- based 3i said today in a joint statement.
“MWM is recognized for its leading technology and product strength, particularly for its highly efficient range of engines,” Doug Oberhelman, Caterpillar’s chief executive officer, said in the statement. “This is a natural complement to Caterpillar’s existing diesel and gas power generation business.”
Private equity firms such as 3i are taking advantage of renewed appetite from industrial companies for acquisitions to sell assets and return cash to investors. Europe’s largest publicly traded private equity firm bought MWM in 2007 in a deal valuing the company at 360 million euros. It will make 2.2 times its initial investment, or an annual return of more than 25 percent, in the sale to Caterpillar, 3i said.
MWM will become part of Caterpillar’s electric power division, which supplies natural gas and diesel generator sets and integrated power systems, the U.S. company said.
To contact the reporter on this story: Anne-Sylvaine Chassany in Paris at achassany@bloomberg.net
To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net
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