PEORIA, Ill., July 1, 2013 /PRNewswire/ -- Caterpillar Inc. (NYSE: CAT) has signed a definitive agreement to acquire Johan Walter Berg AB, including its core brand of Berg Propulsion, a leading manufacturer of mechanically and electrically driven propulsion systems and marine controls for ships. With the acquisition, Caterpillar will transition from selling only engines and generators to providing complete marine propulsion package systems.
Headquartered in Ockero Islands, Sweden, Berg has designed and manufactured heavy-duty marine thrusters and controllable pitch propellers since 1929. Its proprietary systems are employed in maritime applications throughout the world that require precise maneuvering and positioning.
"Berg is one of the most highly regarded brands in the marine industry," said Tom Frake, Caterpillar vice president with responsibility for the Marine and Petroleum Power Division. "Our team will now be able to provide worldwide Caterpillar support to marine operators for a complete, optimized propulsion package, including bow thrusters, gear boxes and shaft alternators. In addition, Berg's expertise, focus on maximizing customers' uptime and minimizing operation cost aligns well with Caterpillar's value proposition."
Berg will become part of the Caterpillar Marine and Petroleum Power Division, which supplies diesel and natural gas engines for the generation, control and supply of mechanical and electric power for the marine and petroleum industries.
"This marks the beginning of an exciting new chapter in our company's history and is a chance to become part of the strongest brands – both Caterpillar and MaK – in our industry," said Hakan Svensson, Berg's Chief Executive Officer. "Berg has proudly served the marine industry for 101 years, always striving to provide the best economical and environmentally sound customer solutions. We look forward to developing and providing an even greater portfolio of products and services for ship owners around the world."
Berg's thrusters, propellers and control systems will be rebranded as Caterpillar soon after the close of the deal, which is expected in the third quarter 2013, pending final regulatory approvals.
For more than 85 years, Caterpillar Inc. has been making sustainable progress possible and driving positive change on every continent. With 2012 sales and revenues of $65.875 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services and Progress Rail Services. More information is available at: http://www.caterpillar.com.
Berg Propulsion is one of the world's leading designers and producers of Controllable Pitch Propellers for the shipping industry. Our strength lies in exceptional functional and technical expertise coupled with extensive industry knowledge. We deliver fully customized main propellers, azimuth thrusters, transverse thrusters and manoeuvre systems, and 24-hour service. Berg Propulsion operates from state-of-the-art production facilities in Sweden and Singapore, with sales and marketing offices in China (Shanghai and Guangzhou), Turkey, Dubai, Singapore, Germany, Spain, Brazil, Italy, West Africa, India, South Korea and the Swedish west coast. For more information, visit www.bergpropulsion.com.
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SOURCE Caterpillar Inc.