Caterpillar Inc.has signed an agreement for the acquisition of MWM GmbH from 3i in October. The total transaction value amounts to approximately €580 million. With the acquisition of MWM, Caterpillar will significantly expand its portfolio in the field of highly efficient, eco-friendly power generation solutions.
MWM will become part of Caterpillar’s electric power division (EPD), which supplies natural gas and diesel generator sets and integrated power systems involved in the generation, control, and supply of electricity.
“MWM is recognised for its leading technology and product strength, particularly for its highly efficient range of engines, combined heat and power and trigeneration solutions capable of operating on a wide range of gaseous fuels including natural gas, biogas, mine gas, and industrial waste gas,” Caterpillar CEO, Doug Oberhelman said.
MWM said that it will remain in the market as an independent brand and that the sale to Caterpillar will not affect any of the ongoing or future business relationships. All existing agreements remain unaffected by the change in ownership and continue to be valid.
“We highly appreciate 3i’s support and believe that Caterpillar provides the best prospects for the next step of our development, given its worldwide network which will open up new distribution and growth opportunities to us,” MWM CEO, Peter Grosch said.
The integration of MWM will result in important synergies leveraging the two companies’ existing product ranges, advanced engine technologies, research and development resources, manufacturing, distribution, and customer support capabilities.
“The gas engines industry is a great fit for Caterpillar’s energy and electric power systems business. Together with the two companies’ premium products, technology, and global distribution network, our comprehensive offerings will deliver sustainable power system solutions for our global customers,” Caterpillar vice president (electric power), Bill Rohner said.
The acquisition is expected to close in the coming months, pending final regulatory approval.