Finning to buy Caterpillar units
Vancouver-based Finning International (FTT-T) agreed to acquire Caterpillar‘s (CAT-N) distribution and support business formerly operated by Bucyrus in parts of South America, Western Canada and the United Kingdom.
Finning expects to provide sales, service and support for former Bucyrus mining products in all of Finning’s dealership territories.
The transaction is valued at about $470 million. Finning plans to fund the transaction primarily through the issuance of U.S. and Canadian dollar denominated term debt. The transaction should be accretive to Finning’s 2012 earnings.
“Upon the close of this acquisition, Finning will be able to sell and support a comprehensive product line that meets our customers’ surface and underground mining equipment needs,” said Mike Waites, Finning’s president and CEO, in a press release.
“We’re making good progress as we transition the product distribution and support of former Bucyrus machinery to Cat dealers around the world,” said Steve Wunning, Caterpillar’s group president for resource industries.
The acquired distribution and support business, which has current annual revenues of about US$600 million, includes facilities and inventory primarily in South America and Canada, as well as about 900 former Bucyrus employees who are expected to transition to Finning after the acquisition.
Atlas Copco snaps up GIA’s mining division
Atlas Copco is buying the mining business of Sweden-based GIA Industri. The acquisition has 113 employees and annual revenues of about $34 million.
“We are entering new market segments and will be able to serve customers with an even broader product portfolio,” said Bob Fassl, president of Atlas Copco’s mining and rock excavation division.
The acquisition expands Atlas Copco’s business with products including electric mine trucks, utility vehicles and ventilation systems.
“We especially look forward to offering our customers the Kiruna Electric haulage truck with its strong environmental profile. We see great opportunities in leveraging Atlas Copco’s global sales network for this and GIA’s other products,” Fassl said.
GIA’s products also include locomotives and shuttle car systems for underground transportation, charging and service trucks, scaling and cable bolting equipment, digging arm loaders and complete ventilation systems.
Veolia Water to build concentrator in Australia
Energy Resources Australia (ERA-A) has selected brine concentrator technology from Veolia Water to treat and reduce process water inventory from its Ranger uranium mine in Australia’s Northern Territory.
The brine concentrator will treat about 1,830 megalitres of water annually (1.3 million gallons per day) to minimize the environmental impact of operations and significantly reduce process water inventory at Ranger.
The brine concentrator uses thermal energy to evaporate water, which produces clean distillate that will meet strict water quality requirements for release into the company’s constructed wetlands system.
Commissioning of the brine concentrator plant is expected to be completed in mid-2013.
Rio Tinto (RIO-N) owns 68.4% of Energy Resources.
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