WesTrac buys China CAT business
UPDATE 2.20pm: Seven subsidiary WesTrac China will pay $US130 million ($A143.13 million) to acquire Caterpillar Global Mining's distribution and support business in north-east China.
WesTrac, which is shedding 1000 jobs in Australia and restructuring its business in response to a slowdown in mining investment, will fund the acquisition through a five year debt facility.
It plans to expand the business, adding approximately 80 employees and says the acquisition will yield between $210 million and $250 million in additional revenue in the 2015 financial year.
"We are pleased to be building on and extending our partnership with Caterpillar," Seven Group chief executive Don Voelte said.
"The acquisition of the expanded mining product distribution and support business in our north-eastern China markets will enhance our plans for development in the supply and service of heavy equipment to the mining and construction sectors."
Seven shares closed up six cents at $7.09.
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