Caterpillar (NYSE:CAT) announced today that they have formally completed the acquisition of MWM Holding GmbH. On October 19th, 2011, the European Commission paved the way for Caterpillar to acquire MWM, which they have officially completed.
Caterpillar bought MWM from 3i and funds managed by 3i for about $800 million dollars (or, €580 million) in the purchase of MWM.
The company mentioned today that the acquisition of MWM will enable them to “significantly expand customer options for sustainable power generation solutions.”
Caterpillar released the following statement regarding the acquisition, “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.”
Concerning where MWM will go to within Caterpillar’s structure, it will fall within the Electric Power Division, which supplies diesel and natural gas generator sets and integrated power systems. The integrated power systems are for generation, control and supply of electricity.
Bill Rohner, Caterpillar vice president with responsibility for Electric Power, said, “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.”
Peter Grosch, former chairman of MWM leading up to the acquisition by Caterpillar, has decided to step down as chairman. He said the following regarding the acquisition, “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.”
Grosch, while leaving the position of chairman of MWM, will join Caterpillar as an integration adviser.
Regarding Grosch’s departure of MWM, Rochner said the following, “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.”
Post-acquisition, Caterpillar has said that Willy Schumacher will be MWM’s managing director and will report directly to Rohner. Headquarters for MWM will remain the same, in Mannheim, Germany.
Get Analysts' Upgrades and Downgrades Daily - Enter your email address below to receive a concise daily summary of analysts' upgrades, downgrades and new coverage with MarketBeat.com's FREE daily email newsletter.