PEORIA, Ill., Jan. 31 /PRNewswire-FirstCall/ -- Caterpillar Inc. (NYSE:CAT) and Remy International, Inc. announced today that Caterpillar Inc. is acquiring certain assets of Franklin Power Products, Inc. (FPP) and International Fuel Systems, Inc. (IFS), subsidiaries of Remy International. The acquisition agreement was signed on January 31, 2007. The deal is expected to close soon and is subject to the completion of legal and regulatory requirements.
Franklin Power Products is a leading remanufacturer of on-highway light- and medium-duty truck diesel engines and engine components. International Fuel Systems is a premium provider of remanufactured diesel engine components such as high pressure fuel pumps, fuel injectors and turbochargers.
"This acquisition represents an excellent strategic fit between Cat Reman and these two companies. It increases our overall product and service offering, and will provide a platform for future growth opportunities for Cat Reman," said Steve Fisher, Caterpillar vice president with responsibility for remanufacturing. "We intend to facilitate growth by applying our competencies of core management, salvage technology expertise and process efficiency improvement to Franklin Power Products and International Fuel Systems. This will help Cat Reman to improve our range of products and services offered to customers in the on-highway segment."
"Caterpillar recognizes the value of our terrific people and great product offerings at FPP and IFS, and the premium we place on customer relationships," said John Weber, President and CEO of Remy International, Inc. "Our customers should look forward to a smooth transition and continuing to be well served by Caterpillar."
With the acquisition of Franklin Power Products and International Fuel Systems, Cat Reman will be positioned as the leading diesel engine remanufacturer in North America with a full range of products and remanufacturing capabilities for automotive and light truck engines.
"We look forward to providing quality remanufactured engine products and core management services on a global basis to these customers as well," commented Fisher. "Additional product offerings may be considered in the future as customer needs and opportunities are identified."
The acquired businesses will join 14 other Caterpillar remanufacturing facilities located in the United States, Mexico, Europe and Asia. Caterpillar is one of the largest remanufacturers today, recycling more than 2 billion pounds of material annually. It uses state-of-the-art remanufacturing technology to recycle used products, such as engines and transmissions, into like-new components.
For more than 80 years, Caterpillar Inc. has been making progress possible and driving positive and sustainable change on every continent. With 2006 sales and revenues of $41.517 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and a wide and growing offering of related services. More information is available at http://www.cat.com .
Certain statements in this release relate to future events and expectations and as such constitute forward-looking statements involving known and unknown factors that may cause actual results of Caterpillar Inc. to be different from those expressed or implied in the forward-looking statements. In this context, words such as "will" and "expect" or other similar words and phrases often identify forward-looking statements made on behalf of Caterpillar. It is important to note that actual results of the company may differ materially from those described or implied in such forward-looking statements based on a number of factors and uncertainties, including, but not limited to, changes in economic conditions, currency exchange rates or political stability; market acceptance of the company's products and services; significant changes in the competitive environment; changes in law, regulations and tax rates; and other general economic, business and financing conditions and factors described in more detail in the company's filings with the Securities and Exchange Commission, including the Form 10-Q filed with the Securities and Exchange Commission on January 26, 2007. We do not undertake to update our forward-looking statements.
Source: Caterpillar Inc.