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Caterpillar has agreed to sell its distribution business in South Africa and Botswana for US$115 million, according to newswire MarketWatch
The construction machinery giant will sell the distribution and support business to brand management firm Barloworld as part of its continuing programme of selling off the distribution units it recently acquired from Bucyrus.
Caterpillar group president Steve Wunning said, “We’re pleased to announce this agreement as we continue to make good progress on our transition of the product distribution and support of former Bucyrus machinery to Cat dealers around the world.”
Barloworld had previously agreed with the former owners of Bucyrus, Eqstra NH Equipment and Eqstra Botswana, to buy the distributorship and mining-services businesses for the two southern African countries. Eqstra will receive close to $60 million of the final transaction.
Caterpillar bought mining-equipment manufacturer Bucyrus for $7.6 billion in July and has since made a series of deals to sell off portions of that company’s distribution businesses.