In March, Caterpillar began considering its “strategic options” for its third-party logistics operation, including a potential sale or structuring it as an independent business within Cat Logistics.
“The third-party logistics business has been a high performing operation within Caterpillar, serving more than 50 customers worldwide in a number of different industries,” said Steve Larson, vice president of Caterpillar and chairman and president of Cat Logistics, at the time of the announcement. The company created the subsidiary in 1987.
In 2010, external sales accounted for 29.6 percent of Caterpillar’s $2.23 billion in logistics revenue compared to its $1.95 billion in logistics revenue a year earlier.
“Given Caterpillar’s increased focus on the significant growth opportunities in its core businesses, the company has decided to consider its options for the future of this business,” Larson added.
Caterpillar’s manufacturing logistics and transportation operations and Caterpillar brand parts distribution are not part of the third-party business and are not part of the strategic review. Caterpillar said those operations will continue as core businesses within the company.
The Peoria, Ill.-based earthmoving equipment maker said during its third quarter 2011 financial release that it had “received significant interest from around the world” for its 3PL business. A decision of whether to sell the operation is expected by the end of the year.
CAT 3PL generates buyer interest
