US construction and mining equipment maker Caterpillar Inc (NYSE:CAT) has agreed to sell its Bucyrus mining equipment distribution and support business in certain Canadian provinces to its local dealer Hewitt Equipment Ltd and its unit Atlantic Tractors & Equipment Ltd, the parties said.
The agreement calls for Caterpillar Global Mining LLC to dispose of the Bucyrus equipment distribution and support activities in the province of Quebec, Western Labrador and the Maritimes. The transaction is scheduled for completion on 1 August. Its financial terms were not disclosed.
The acquisition of these operations will extend the product offering of Hewitt for its mining clients, the buyer’s president and CEO Jim Hewitt stated.
Over the last several months, the US company had announced similar deals with other dealers. At the end of May 2012, it said that Caterpillar Global Mining had signed an agreement to shed the Bucyrus equipment distribution and support operations in South Africa and Botswana to Barloworld Ltd (JNB:BAW) for USD115m (EUR94.9m). Before that, the company had closed similar transactions with Sime Darby Industrial and Finning International Inc. It also has pending deals with the latter as well as with WesTrac Pty Ltd and Ferreyros SAA.
Caterpillar said further it continues to negotiate such transactions with other Cat dealers with mining operations on their territory.
Canadian Teachers’ Private Capital (TPC), the private equity investment arm of Ontario Teachers’ Pension Plan, has entered into an agreement to buy a 75% stake in Norwegian outdoor apparel designer Helly Hansen Group AS.
TPC will take the controlling stake from Altor Fund II for an undisclosed amount, the buyer announced on Friday. It noted that the fund will retain the remaining 25% in the apparel group.
Commenting on the transaction, TPC vice president and head of Teaches’ London office Jo Taylor said that the company recognises excellent opportunities to continue increasing revenues and international awareness outside its core European markets.
Oslo-based Helly Hansen specialises in designing, developing and marketing technical apparel for skiing, sailing, training and other outdoor activities. The firm has about 500 workers and generated a revenue of NOK1.58bn (USD259.2m/EUR212.4m) in 2011.
Its CEO Peter Sjolander said the company will seek an international expansion of the brand, more specifically in North America. The executive believes that the solid financial support and established global presence of its new owner will prove to be invaluable in helping Helly Hansen reach this goal.
Ontario Teachers’ Pension Plan is a Canadian single-profession pension plan with CAD117.1bn (USD115.2m/EUR94.4m) in assets as of the end of 2011. Its investment arm manages a global portfolio worth some CAD12bn.