Caterpillar weighs sale of logistics business
Caterpillar Inc. said it is examining “strategic options” for its third-party logistics business, 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 Inc. and chairman and president of Cat Logistics. The company created the subsidiary in 1987.
“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,” he 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 Cat Logistics.
Caterpillar has retained Bank of America, Merrill Lynch and Robert W. Baird & Co. to assist in the review. A final decision about the 3PL business is expected by the end of 2011.
Last year external sales accounted for 29.6 percent of Caterpillar’s $2.23 billion in logistics revenue compared to 35 percent of its $1.95 billion in logistics revenue in 2009.