Business

Caterpillar selling logistics unit stake for $750M

Posted May 10, 2012 10:00 am

Associated Press

Peoria-based Caterpillar is selling a majority stake in a logistics division for about $750 million to better focus on its core businesses.

The world's largest maker of construction and mining equipment said Thursday that it is selling a 65 percent interest in Caterpillar Logistics Services LLC to Platinum Equity.

Caterpillar will keep a 35 percent interest in the business.

Caterpillar Logistics Services continue to provide logistics services for non-Caterpillar branded parts including FG Wilson, Perkins, Solar, as well as for Caterpillar Japan.

The sale won't impact its manufacturing logistics and transportation operations and Cat brand parts distribution.

The deal is expected to close in the third quarter.

Shares of Caterpillar Inc. added 86 cents to sell for $96.85 in Thursday morning trading.

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