Caterpillar buys MWM
By Caterpillar Inc.News
Nov. 2, 2011 - Caterpillar has announced it has finalized the purchase of MWM Holding from 3I for approximately $300 million. The action follows the European Commission's recent clearance of the transaction. MWM is a global supplier of sustainable, natural gas and alternative-fuel engines.
Caterpillar hopes the acquisition of MWM will enable Caterpillar to significantly expand customer options for sustainable power generation solutions.
"The completion of the MWM acquistion represents the latest step in our strategic plan to aggressively grow our energy and power systems business," Gerard Vittecoq, Caterpillar energy and power systems group president, said. "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."
MWM will become part of Caterpillar's electric power division, which supplies diesel and natural gas generator sets and integrated power systems involved in the generation, control and supply of electricity.
"The acquisition of MWM is a natural fit for Caterpillar and our electric power business," Bill Rohner, Caterpillar vice-president of electric power, said. "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."
"The integration of MWM into Caterpillar is a very positive stop for the company's future development, its employees, distributors and business partners," Peter Grosch, former MWM chairman, said. "Caterpillar provides the best prospects for MWM, given its worldwide network which will open up new distribution and growth opportunities. Conversely, MWM's products and expertise in decentralized, efficient and sustainable power generation will also represent a major enrichment to Caterpillar." Grosch has elected to step down as chairman of MWM, but will continue to support Caterpillar as an integration advisor.
"We thank Peter for his service to MWM and appreciate his extraordinary contributions as chairman over the last four years," Rohner said. "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."
Willy Schumacher will assume responsibility for MWM as managing director, reporting to Rohner. MWM will remain headquartered in Mannheim, Germany.
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