Caterpillar to Buy Marine Propulsion Firm Berg

Caterpillar says the acquisition will allow it to transition from selling only engines

Caterpillar Inc. [NYSE:CAT] (Caterpillar) says it has signed a definitive agreement to acquire Swedish marine propulsion and control systems manufacturer Johan Walter Berg AB (Berg), including its core brand of Berg Propulsion.

The acquisition will allow Caterpillar to transition from selling only engines and generators to providing complete marine propulsion package systems, it said.

"Berg is one of the most highly regarded brands in the marine industry," said Tom Frake, Caterpillar's vice president for its 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."

Öckerö Islands, Sweden-headquartered 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 Håkan 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.