Caterpillar Inc. has announced it has finalized the purchase of MWM Holding GmbH (MWM) from 3i and funds managed by 3i for euro 580 million (approximately $800 million).
This action follows the European Commission's recent clearance of the transaction. MWM is a leading global supplier of sustainable, natural gas and alternative-fuel engines.
The acquisition of MWM will enable Caterpillar to significantly expand customer options for sustainable power generation solutions.
"The completion of the MWM acquisition represents the latest step in our strategic plan to aggressively grow our energy and power systems business," said Gerard Vittecoq, Caterpillar group president with responsibility for Energy and Power Systems. "More and more customers want a gas option for their engines. By combining our strengths in diesel and gas power generation with the technology and product strength of MWM, we are well positioned to be a lead provider in gas engine solutions for our customers."
MWM will become part of Caterpillar's Electric Power Division, which supplies diesel and natural gas generator sets and integrated power systems involved in the generation, control and supply of electricity.
"The acquisition of MWM is a natural fit for Caterpillar and our electric power business. With the combination of the two companies' existing product ranges, Caterpillar is well positioned to meet our global customers' gas engine and power system solutions needs. By joining MWM's leading technology with Caterpillar's product support, we are uniting two strong companies that ensure we continue to be the leading innovator in our industry and the first choice for our customers," said Bill Rohner, Caterpillar vice president with responsibility for Electric Power.
"The integration of MWM into Caterpillar is a very positive step for the company's future development, its employees, clients, distributors and business partners. Caterpillar provides the best prospects for MWM, given its worldwide network, which will open up new distribution and growth opportunities. Conversely, MWM's industry-leading products and expertise in decentralized, efficient and sustainable power generation will also represent a major enrichment to Caterpillar," said Peter Grosch, who has elected to step down as chairman of MWM. Mr. Grosch will continue to support Caterpillar as integration advisor.
"We thank Peter for his service to MWM and appreciate his extraordinary contributions as chairman over the last four years. We look forward to working with Peter in his role as integration advisor, which will be key as we work to ensure a successful integration of the two organizations," said Rohner.
Willy Schumacher will assume responsibility for MWM as managing director, reporting to Bill Rohner. MWM will remain headquartered in Mannheim, Germany.
Source: www.caterpillar.com