Bucyrus mining equipment being purchased by Caterpillar

In an effort to expand the business, gear manufacturer Caterpillar is going to purchase Bucyrus mining equipment. Caterpillar currently manufactures every little thing from large machines to diesel engines. The purchase of Bucyrus will help Caterpillar expand into the mining gear industry.

Exactly what Bucyrus is

Far from a household name, Bucyrus is a mining-equipment manufacturer. In 2009, Bucyrus did about $2.65 billion in business while employing 7,000 individuals in South Milwaukee, Wis.. It is in charge of making all the equipment for mining coal, copper and even gold around the world underground and about the surface. Digging usually includes Bucyrus gear in some way. Even the Panama Canal used it.

Package for Bucyrus from Caterpillar

For the last few years, Bucyrus has been trying to expand. In 2007 and 2010, deals were made by Bucyrus. DBT GmbH and Terex Mining where those who made the deals. The public owns Bucyrus. Caterpillar will give stockholders $92 a share. This is more than exactly what Bucyrus stocks were trading for when the purchase was made by 30 percent. The deal will require cash through a payday loan no faxing to finance the $7.6 billion deal. Equity and debt can be needed too. Caterpillar is relying about the “cheap financing” from low interest rates available in banks.

Exactly what the Bucyrus/Caterpillar deal indicates

Caterpillar could be really glad when the Bucyrus deal is over. It will mean the company can start working to mine precious metals and rare-earth minerals within the mining business. The products sold the first time at Bucyrus only pays for about one 3rd of its income. The other 2 thirds come from after-market parts and services that are sold. In short, Caterpillar could be expanding into a major growth industry. Caterpillar is going to be much more well rounded as a business. Anything from the large equipment trucks to the gear that pulls minerals out of the ground could be sold by the company.

Info from

Cat.com

cat.com/products/

Bucyrus

bucyrus.com/news/article/20101115_71755.aspx

Wall Street Journal

blogs.wsj.com/deals/2010/11/15/caterpillar-deal-everything-you-wanted-to-know-about-bucyrus/