| Wed 30 May 2012, 14:05 | | BAW - Barloworld Limited - Press Release |
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BAW
BAW
BAW - Barloworld Limited - Press Release
Barloworld Limited
(Incorporated in the Republic of South Africa)
(Registration number 1918/000095/06)
(Share code: BAW)
(ISIN: ZAE000026639)
("Barloworld or the Company")
PRESS RELEASE
A webcast presentation by the CEO of Barloworld, Mr Clive Thomson, to discuss
the transaction will be held today at 16:00 South Africa time on the Barloworld
website www.barloworld.com. Pre-registration will be available from 15:30.
Barloworld to acquire Bucyrus distribution and support business from Caterpillar
and to acquire Eqstra`s Bucyrus distributorship and mining services business.
Johannesburg -Barloworld Limited (JSE: BAW) and Caterpillar Inc. (NYSE: CAT)
today announced that Barloworld and Caterpillar Global Mining LLC have signed an
agreement for Barloworld to acquire the Bucyrus equipment distribution and
support business in South Africa and Botswana.
In addition, Caterpillar Global Mining has assigned to Barloworld its agreements
with Eqstra NH Equipment (Pty) Limited and Eqstra Botswana (Pty) Limited
(together referred to as `Eqstra`) for the purchase of Eqstra`s South Africa and
Botswana Bucyrus distributorship and mining services businesses.
The total transaction, including the former Eqstra mining services businesses,
is valued at approximately US $175 million and will be funded using a
combination of cash resources, existing facilities and new bridge facilities.
Upon completion of these transactions, Barloworld expects to begin providing
sales, service and support for all of the former Bucyrus mining products in all
its dealership territories in southern Africa. Annual revenues for the Bucyrus
distribution and support business in southern Africa for the upcoming 2013
financial year are estimated to be in the range of $335 million to $385 million.
The acquisition is expected to be accretive to earnings and headline EPS in the
first full financial year ending 30 September 2013.
Subject to customary closing conditions and required regulatory approvals, it is
anticipated that the transactions will close in the third quarter of calendar
2012. Following completion of the acquisition, approximately 470 former Bucyrus
and Eqstra (Bucyrus distributorship business) employees and contract workers
are expected to transition to Barloworld.
Clive Thomson, CEO of Barloworld said, "This acquisition is perfectly aligned
with the group`s growth strategy. It builds on our existing strengths and will
enhance our leading position in the mining industry by significantly expanding
the range of equipment solutions we are able to provide to customers operating
across southern Africa. The Bucyrus product line and large installed base are a
logical addition to our current range of Cat products and will provide us with
significant opportunities for future growth with our mining customers. "
"We`re pleased to announce this agreement with Barloworld today as we continue
to make good progress on our transition of the product distribution and support
of former Bucyrus machinery to Cat dealers around the world," said Steve
Wunning, Caterpillar group president with responsibility for Resource
Industries. "Barloworld and Caterpillar have a longstanding relationship, and we
look forward to realizing the growth opportunities created by this agreement."
Discussions are continuing between the companies in relation to the former
Bucyrus distribution and support businesses in the Barloworld dealership
territories in Russia and Iberia, and a further announcement in relation to this
will be made in due course.
Media and other enquiries:
Barloworld contact:
Jacey de Gidts
Head: Group Communication and Marketing
+27 11 445 1281
jaceydg@barloworld.com
College Hill
Jacques de Bie
+27 82 691 5384
jacques.debie@collegehill.co.za
Sponsor:
J.P. Morgan Equities Limited
About Barloworld:
Barloworld is a distributor of leading international brands providing integrated
rental, fleet management, product support and logistics solutions. The core
divisions of the group comprise Equipment (earthmoving and power systems),
Automotive and Logistics (car rental, motor retail, fleet services, used
vehicles and disposal solutions, logistics management and supply chain
optimisation) and Handling (materials handling and agriculture). We offer
flexible, value adding, integrated business solutions to our customers backed
by leading global brands. The brands we represent on behalf of our principals
include Caterpillar, Hyster, Massey Ferguson, Avis, Audi, BMW, Ford, General
Motors, Mercedes-Benz, Toyota, Volkswagen and others.
www.barloworld.com
Date: 30/05/2012 14:05:01 Produced by the JSE SENS Department.
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