Platinum Equity to acquire 65 % in Caterpillar Logistics for $750 million

Platinum Equity, a US-based private equity investment firm, yesterday agreed to acquire a 65-per cent stake in the world's largest construction and mining equipment maker Caterpillar's third-party logistics unit for about $750 million.

Peoria, Illinois-based Caterpillar will retain a 35-per cent interest in Caterpillar Logistics Services and focus on expanding its ''core'' business, the company said in a statement.

As part of the sale agreement, Platinum will oversee distribution for engine businesses owned by Caterpillar, including Perkins engines, Solar turbine engines and FG Wilson power generators. Caterpillar will continue to operate the distribution for its Caterpillar-branded parts and equipment.

The proposed sale does not impact Caterpillar's manufacturing logistics and transportation operations and the Cat brand parts distribution, which will continue as core businesses within Cat Logistics. 

Platinum Equity partner Jacob Kotzubei said that the investment is a perfect fit for Platinum given the firm's significant experience in executing carve-out transactions and operating logistics businesses.