Caterpillar said it has finalized the sale of a 65% stake in a division of its Caterpillar Logistics operation – Caterpillar Logistics Services (CLS) – to private equity firm Platinum Equity for approximately $750 million.
"The sale of the third party logistics business was driven by the strategic focus on the significant growth opportunities in our company's core businesses," said Steve Larson, VP at Caterpillar and chairman and president of Cat Logistics.
Platinum Equity Partner Jacob Kotzubei said his firm intends to establish CLS as a standalone company under a new brand that will be announced at a later date.”CLS has a rich history of innovation and a compelling customer value proposition," he added. "We look forward to building on that tradition while establishing a new identity and propelling the company to new levels of success."
Caterpillar’s Larson noted, however, that the sale does not impact Caterpillar manufacturing logistics and transportation operations or Cat-branded parts distribution. These services will continue as core businesses within Cat Logistics, he emphasized.
As part of the sale to Platinum Equity, the divested third party logistics business will continue to provide logistics services for non Cat branded parts including FG Wilson, Perkins, Solar, as well as for Caterpillar Japan, Larson said.