Caterpillar to Acquire Bucyrus International

Caterpillar Inc. (Peoria, IL) and Bucyrus International (Milwaukee, WI) have entered into an agreement under which Caterpillar will acquire Bucyrus International in a transaction valued at approximately $8.6 billion. The acquisition is based on Caterpillar's plan to expand its leadership in the mining equipment industry.

Under the terms of the transaction, Bucyrus shareholders will receive $92 per share, $7.6 billion in aggregate consisting of all cash. The transaction represents an implied premium of 32 % to Bucyrus' share price as of November 12, 2010. Caterpillar will fund the acquisition through a combination of cash from the balance sheet, debt and up to $2 billion in equity. The transaction is expected to close in mid-2011. Caterpillar intends to locate its mining business headquarters in South Milwaukee, Wisconsin, where Bucyrus headquarters are currently located, and maintain the Bucyrus brand for the principal Bucyrus legacy products.

A driving motivation for the transaction is Caterpillar's estimate of more than $400 million in annual synergies beginning in 2015 derived from the combined financial strength and complementary product offerings of the combined mining equipment businesses.

On Demand Join this webinar to learn how companies of all sizes are adopting easy-to-use cobots to overcome the labor shortage, handle multi-shift operations, scale production on-the-fly, and solve many other challenges.

The Quality Show South is the place to learn from experts at the top of their field and meet with leading suppliers of testing, measurement, inspection, software, and quality equipment.

Join us in Nashville, TN, and network with quality manufacturing professionals from across the southern U.S.—including automotive, appliances, electronics, aerospace, medical devices, and more—and improve your processes for manufacturing within strict tolerances.