As part of its acquisition of South Milwaukee-based Bucyrus International, Caterpillar will move the headquarters of the global mining division to the former Midwest Airlines headquarters in nearby Oak Creek, Wis., the Milwaukee Biz Times Daily reported. Bucyrus acquired the office complex earlier this year and had already planned to move its corporate headquarters there.
Caterpillar estimates there will be more than $400 million in annual synergies beginning in 2015 from the Bucyrus acquisition, which, Caterpillar officials noted, will represent growth opportunities. Bucyrus, which now has about 1,600 workers in the Milwaukee area, plans to add about 400 new workers. Caterpillar does not plan to move any of its current mining-related production to Milwaukee, but the company expects to grow Bucyrus’ production as demand for coal and other commodities continues to increase.
Tim Sullivan, Bucyrus’ president and CEO, plans to stay with the company through the acquisition’s closing and a transitional period beyond. Caterpillar chairman and CEO Doug Oberhelman said he hoped to keep Sullivan involved in the business longer because of his extensive relationships with customers.