WesTrac China Limited, a wholly owned subsidiary of Seven Group Holdings, has agreed to acquire Caterpillar Global Mining’s distribution and support business in provinces where WestTrac operates in northeastern China for $130 million. After closing, WesTrac expects to begin providing sales, service and support for expanded mining products in these territories.
Seven Group Holdings will fund the transaction through a new five-year debt facility. WesTrac estimates the annual revenues for the acquired distribution and support business to be in the range of $210 million to $250 million for the upcoming 2015 financial year.
Following completion of the transaction, WesTrac will increase its staffing level by about 80 employees including 37 Caterpillar Global Mining employees and contractors in China.
The companies expect the transaction to close by the end of the second quarter of 2014 following customary closing conditions and Chinese regulatory approval.