Caterpillar Inc. last week received notification that the European Commission approved its acquisition of Mannheim, Germany-based MWM Holding GmbH from 3i and funds managed by 3i. Following the acquisition of MWM, a leading global supplier of sustainable, natural gas and alternative-fuel engines, Caterpillar will significantly expand customer options for sustainable power generation solutions.
“We are pleased with this decision from the EC,” said Doug Oberhelman, Caterpillar chairman and CEO. “The MWM business is a natural complement to our longstanding diesel and gas-powered generation business, and the integration of MWM will result in important synergies leveraging the two companies’ existing product ranges, advanced engine technologies, research and development resources, manufacturing, distribution and customer support capabilities.”
The EC clearance is the last major regulatory requirement needed to complete the acquisition, and the transaction is expected to close before year end. The transaction is valued at €580 million (about U.S. $797 million) and will be paid in cash.
MWM draws on more than 135 years of experience in the development and optimization of combustion engines for natural gas, special gases and diesel. MWM will become part of Caterpillar’s Electric Power Division, which supplies natural gas and diesel generator sets and integrated power systems involved in the generation, control and supply of electricity.
Peoria, Ill.-based Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.