PEORIA, Ill. - Caterpillar Inc. (NYSE: CAT) today announced it is examining a
range of strategic options for its third party logistics business, which is part of its wholly
owned subsidiary, Caterpillar Logistics Services, Inc. (Cat Logistics). The company
believes the third party logistics business is a unique and attractive asset that has
excellent growth potential.
"Over the last 24 years, the company has leveraged its traditional competitive
advantage in the Caterpillar parts distribution business to create a global leader in third
party logistics, with dedicated employees, unique and attractive assets and excellent
growth potential," said Caterpillar group president Stu Levenick.
Options under consideration include a potential sale of the third party business or
structuring it as an independent business within Cat Logistics.
"The third party logistics business has been a high performing operation within
Caterpillar, serving more than 50 customers worldwide in a number of different
industries," said Steve Larson, Vice President of Caterpillar Inc. and Chairman and
President of Cat Logistics. "Given Caterpillar's increased focus on the significant growth
opportunities in its core businesses, the company has decided to consider its options for
the future of this business. As we work through these alternatives, we will continue to be
sharply focused on delivering value for our customers," Larson added.
Caterpillar manufacturing logistics and transportation operations and Caterpillar
brand parts distribution are not part of the third party business and are not part of this
strategic review. Those operations will continue as core businesses within Cat Logistics.
Caterpillar has retained B of A Merrill Lynch and Robert W. Baird & Co. to assist
the company as it reviews alternatives. A final decision about the third party logistics
business is expected by the end of 2011.
For more than 85 years, Caterpillar Inc. has been making sustainable progress possible
and driving positive change on every continent. With 2010 sales and revenues of $42.588
billion, Caterpillar is the world's leading manufacturer of construction and mining
equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric
locomotives. The company also is a leading services provider through Caterpillar
Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services
and Progress Rail Services. More information is available at: www.caterpillar.com.