Caterpillar to Acquire Bucyrus Building Mining Equipment Company

Caterpillar to Acquire Bucyrus Making mining equipment Organization With Unmatched Item Range, Unrivaled Customer Support; Very Complementary Combination Expected to Drive Strong Synergies

PEORIA, Ill. and SOUTH MILWAUKEE, Wis. - Caterpillar Inc. (NYSE: CAT) and Bucyrus International, Inc. (Nasdaq: BUCY) announced currently they have entered into an agreement under which Caterpillar will acquire Bucyrus International in a transaction valued at roughly $8.6 billion (which includes net debt). The acquisition is based on Caterpillar's important strategic imperative to expand its leadership within the mining equipment industry, and positions Caterpillar to capitalize on the robust long-term outlook for commodities driven by the trend of rapid growth in emerging markets which are improving infrastructure, rapidly establishing urban areas and industrializing their economies. secondary crusher

Under the terms in the transaction, which has been approved by the boards of directors of each providers, Bucyrus shareholders will get $92 per share, $7.6 billion in aggregate consisting of all cash. The transaction represents an implied premium of 32 percent to Bucyrus' share value as of November 12, 2010. Caterpillar will fund the acquisition by means of a mixture of cash from the balance sheet, debt and as much as $2 billion in equity. The transaction is expected to close in mid-2011. Caterpillar intends to find its mining enterprise headquarters in South Milwaukee, Wisconsin, exactly where Bucyrus headquarters is currently located, and retain the Bucyrus brand for the principal Bucyrus legacy goods.

"For many years, mining shoppers have been asking us to expand our range of solutions and services to improved serve their increasingly complicated specifications," said Caterpillar Chairman and CEO Doug Oberhelman. "This announcement says to those shoppers, we heard you loud and clear. It is a strong statement about our belief inside the bright future of the mining sector. Our strategy calls for disciplined investment in desirable industries that value our item and service delivery model," Oberhelman stated. "Our performance by way of the global economic turmoil of 2008-2009 allowed us to emerge with a strong balance sheet and also the capacity to make strategic investments in organizations like Bucyrus. This, along with other current acquisitions, will position Caterpillar for business leadership and will probably be positive for our stockholders, customers and staff." gold crusher South Africa

Tim Sullivan, Bucyrus President and CEO, stated, "This is an outstanding and financially compelling transaction for our shareholders. A lot more fundamentally, it is a testament towards the tremendous value our talented team of staff has made over the past quite a few years and for the strength of our brand inside the international mining machinery marketplace. I'm confident that we have identified an excellent partner in Caterpillar. Caterpillar is actually a first-rate international firm and it shares our commitment to providing innovative items and exceptional service to prospects, developing a collaborative and secure function atmosphere for staff and minimizing the impact on the environment. We're really pleased that Caterpillar has committed to find its mining company headquarters in Milwaukee and we're confident that the combined international platform might be incredibly well positioned to capitalize on the substantial growth opportunities in this market place within the years ahead."

The closing in the transaction is topic to regulatory approvals, customary closing conditions and approval by Bucyrus stockholders. At that time, Caterpillar Group President Steve Wunning will have executive workplace accountability for Bucyrus, in addition to his present responsibilities for the company's mining organization.

"Even right now at mine websites around the globe, our shoppers are using Bucyrus shovels to load Caterpillar mining trucks," Wunning said. "This mixture, as well as the important expansion in solutions and facility capacity already announced, gives us the chance to expand the range of surface and underground mining merchandise and solutions provided to customers by Caterpillar and its dealer network." gold ore crusher

A driving motivation for the transaction is Caterpillar's estimate of additional than $400 million in annual synergies beginning in 2015 derived from the combined monetary strength and complementary item offerings from the combined mining equipment enterprises. Synergies driven by the acquisition consist of:

• Market top sales and support capabilities of Caterpillar dealers and a broad, one-stop shop for international mining customers


• Caterpillar Remanufacturing solutions and services for Bucyrus equipment


• Caterpillar engines and components to improve efficiency and lower owning and operating costs for Bucyrus equipment


• Additional scale and cost efficiencies in places such as getting and engineering


• Deployment of manufacturing most effective practices by means of the Caterpillar Production System

Advisors:

J.P. Morgan Securities LLC served as exclusive monetary advisor for Caterpillar and has provided committed financing for the transaction. Mayer Brown LLP, Sidley Austin LLP and Howrey LLP served as legal advisors for Caterpillar. Deutsche Bank Securities Inc. and UBS Investment Bank served as financial advisors for Bucyrus. Sullivan & Cromwell LLP and Arnold & Porter LLP served as legal advisors for Bucyrus.