Construction machinery maker Caterpillar has completed the sale of its third party logistics arm – Caterpillar Logistics Services – to Platinum Equity in a deal worth $750m. Platinum Equity is also one of four companies reported to be bidding for Gefco, the logistics arm of PSA Peugeot Citroën.
Platinum Equity has taken a 65% stake in the business and plans to establish it as a standalone company under a new brand. Caterpillar will keep a 35% share.
The sale does not affect Caterpillar manufacturing logistics and transport operations and Cat brand parts distribution, which will continue as core businesses within Cat Logistics.
Caterpillar has also announced plans for a multiyear expansion and enhancement of the Cat parts distribution network, which has added over 4m square-feet of capacity in new parts distribution centres in the US, Mexico and the United Arab Emirates. The company posted sales of more than $60 billion in 2011.
Platinum Equity, run by founder and chairman Tom Gores, was also one of four private equity companies that has been reported by Reuters to be bidding for Gefco in a sales that could yield PSA around €1 billion ($1.22 billion).
Another company bidding is reported to be the Gores Group, founded by Tom Gores’s brother, Alec E. Gores, which also owns North American finished vehicle provider United Road.
The other two bidders are reported to be PAI and a team of CVC and AXA Private Equity. Reuters said that the four bidders were confirmed by four people familiar with the matter. Neither the private equity groups nor PSA have confirmed their status as bidders.
Gefco’s managing director, Luc Nadal, has said that details of the sale would likely be announced in October.