Finning Completes Acquisition of Bucyrus Distribution Business in Western Canada
Finning International Inc. announced that it has completed its previously announced acquisition from Caterpillar of the former Bucyrus distribution and support business in its dealership territory across Western Canada. This represents the final stage in the company's phased acquisition and follows the successful completion of the transaction for Finning in South America and the U.K. on May 2, 2012.
"With the integration advancing seamlessly in South America and the U.K., we are pleased to have now completed the final portion of the acquisition as planned in Finning Canada," said Mike Waites, president and CEO of Finning International Inc. "Consistent with our strategy, this transaction strengthens our leadership position in the mining industry by allowing us to sell and service a comprehensive product portfolio that meets our customers' surface and underground mining needs. We have moved quickly to seize opportunities in the U.K. and South America and we look forward to taking advantage of the tremendous potential in Canada."
"We have worked hard to make this transition a success and are delighted to welcome our new colleagues to our Canadian operations," said Andy Fraser, president of Finning Canada. "With this acquisition completed, we look forward to providing even greater value to our mining customers with an expanded product line and unrivalled service."
The total value of Finning's acquisition of the Bucyrus business is approximately US$465 million, subject to working capital adjustments, and is comprised of approximately US$306 million for Finning in South America and the U.K. and an estimated US$159 million for Finning Canada. The acquisition, which is being financed with debt, is expected to be accretive to earnings in 2012.
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.