Bucyrus mining equipment getting bought out by Caterpillar

Bucyrus mining gear has accepted a deal for a full buyout of their business. Caterpillar equipment manufacturers could be investing $ 7.6 billion for the purchase. There are big machines, engines, and plenty of equipment already built by Caterpillar. Mining gear is a growth industry. Caterpillar hopes to capitalize on this with their purchase of Bucyrus. Source for this article – Caterpillar spending $ 7.6 billion on Bucyrus mining equipment by Personal Money Store.

Looking at Bucyrus

Far from a household name, Bucyrus is a mining-equipment manufacturer. Based in South Milwaukee, Wis., Bucyrus employs just less than 7,000 individuals and did concerning $2.65 billion worth of business in 2009. It manufactures gear to be used in both surface and underground mining for coal, gold, copper and other high-value minerals all over the world. Every little thing including the Panama canal has used Bucyrus equipment for digging.

Caterpillar’s package for Bucyrus

For the last few years, Bucyrus has been trying to expand. In 2007 and 2010, Bucyrus made deals with DBT GmbH and Terex Mining. Bucyrus is a publicly owned company, and stockholders could be becoming $92 a share from Caterpillar. This is concerning 30 percent above exactly what Bucyrus stocks were trading for at the time of the purchase. It will be financed with debt, equity and money through a corporate faxless payday loansfor the $7.6 billion offer. The hope Caterpillar has is that "cheap financing" can be available. This will require banks to give the lowest interest rates possible.

What the Bucyrus/Caterpillar entails

Caterpillar could be able to be part of the mining world which mines for heavy metals and rare-earth minerals with the Bucyrus and Caterpillar offer. The goods sold the first time at Bucyrus only pays for about one third of its income. The other 2 thirds come from after-market parts and services that are sold. In short, Caterpillar could be expanding into a major growth industry. This may also help vertically integrate Caterpillar — meaning the company will not only provide the trucks and big equipment for mining online websites however the equipment that could be pulling minerals out of the ground.

Articles cited

Cat.com

cat.com/products/

Bucyrus

bucyrus.com/news/article/20101115_71755.aspx

Wall Street Journal

blogs.wsj.com/deals/2010/11/15/caterpillar-deal-everything-you-wanted-to-know-about-bucyrus/