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Finning Completes Acquisition of Bucyrus Distribution Business in South America and U.K.
Finning International (TSX:FTT) completed the previously announced acquisition from Caterpillar of the former Bucyrus distribution and support business in portions of South America and in the U.K.
"Today marks a new chapter in our history as we build on our strong foundation as the leading heavy equipment supplier and service partner to support our customers with all of their surface and underground mining equipment needs," said Mike Waites, president and CEO of Finning International Inc. "Acquiring this business fits squarely with our strategy of delivering unrivalled service and solutions in the rapidly growing mining territories where we operate. We are pleased to welcome our new colleagues to Finning as part of this transaction and look forward to working together to fully realize the growth opportunities created by this agreement."
The transaction is valued at US$306 million for Finning in South America and the U.K. An estimated US$159 million will be paid upon completion of the transaction for Finning Canada. The acquisition will be financed with debt and is expected to be accretive to earnings in 2012.
As part of the company's sequenced integration approach, the acquisition of the Canadian portion is now tracking to close at the end of the third quarter of 2012 to ensure a smooth transition of the business. The acquired distribution and support business expands Finning's mining product offerings, provides additional product support opportunities and adds complementary customer service capabilities.
Finning International Inc. is the world's largest Caterpillar equipment dealer delivering unrivalled service to customers since 1933. Finning sells, rents and services equipment and engines to help customers maximize productivity. Headquartered in Vancouver, B.C., the company operates in Western Canada, Chile, Argentina, Bolivia, Uruguay, as well as in the United Kingdom and Ireland.
Article Date: 2012-05-07
Source: Finning International
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