Barloworld today announced it has reached agreement to acquire the remaining 50% shareholding in its Russian Caterpillar equipment joint venture (Vostochnaya Technica) for $52 million (approximately R365 million) (“The Transaction”). The Transaction is subject to certain regulatory and other approvals. Barloworld Chief Executive Officer, Clive Thomson said: “This acquisition is in line with our strategy to grow our core Caterpillar equipment business. It is an opportunity which provides the group with significant long term growth potential in the mining, infrastructure, power systems and forestry segments in Siberia and the Russian Far East. We will work very closely with our principal, Caterpillar, to drive market leadership and have ambitious plans in place to expand our distribution footprint, increase coverage and enhance customer service.”
The business distributes and supports Caterpillar and allied equipment across western Siberia, eastern Siberia, Yakutia and the Russian Far East, a territory some 9, 8 million square kilometres in extent. The company, formed in 1998 as a greenfields operation, has achieved rapid growth over a number of years and now employs close on 400 people in the territory.
The Siberian Caterpillar dealership holds immense promise for Barloworld. The territory has some of the largest mineral reserves in the world, including deposits of coal, gold, copper, iron ore, platinum, palladium, diamonds and nickel. It also has large oil and gas fields and forestry reserves as well as major opportunities for infrastructure development and power supply.
Peter Bulterman, CEO of Barloworld Equipment, stated: “The company is well positioned to deliver strong growth as Russia emerges from the global economic downturn and commodity prices recover. In 2010, revenues approximated $200m and significant growth is anticipated in 2011 as order books have increased
substantially over the past year.”
The Transaction is below the JSE thresholds and is for information purposes only.
Date:
17 November 2010
Sponsor
J.P. Morgan Equities Limited
Enquiries:
Barloworld Limited: Sibani Mngomezulu,
Tel +27 11 445 1000
E-mail [email protected]
College Hill: Jacques de Bie,
Tel +27 11 447 3030
E-mail [email protected]
For background information visit www.barloworld.com
