Caterpillar considers sale of third party logistics business

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US group Caterpillar is looking to sell its third party logistics business which is part of its wholly-owned subsidiary, Caterpillar Logistics Services.

In a statement, the group, best known for its heavy construction and mining equipment, said it was examining a range of strategic options for the business, describing it as “a unique and attractive asset that has excellent growth potential”.

Caterpillar manufacturing logistics and transport operations and Caterpillar brand parts distribution are not part of the third party business and are not part of the strategic review. Those operations will continue as core businesses within Cat Logistics.

Group president Stu Levenick said: “Over the last 24 years, the company has leveraged its traditional competitive advantage in the Caterpillar parts distribution business to create a global leader in third party logistics, with dedicated employees, unique and attractive assets and excellent growth potential.”

Options under consideration include a potential sale of the third party business or structuring it as an independent business within Cat Logistics. A final decision about the third party logistics business is expected by the end of 2011.

The third party logistics business has more than 50 customers worldwide in a number of different industries.

Steve Larson, vice president of Caterpillar and chairman and president of Cat Logistics, said: “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. As we work through these alternatives, we will continue to be sharply focused on delivering value for our customers.”

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