23 October 2010

Caterpillar has signed an agreement to acquire MWM Holding GmbH from 3i. The total transaction value of €580 million (approximately $810 million) will be paid in cash.

MWM, which stands for Motoren-Werke Mannheim, specializes in the development of large combustion engines for natural gas, special gases and diesel. The company is headquartered in Mannheim, Germany.

MWM will become part of Caterpillar’s Electric Power Division (EPD), which supplies natural gas and diesel generator sets and integrated power systems used in the generation, control and supply of electricity. EPD operates in more than 50 locations around the world.

Following the repositioning of MWM over the three years since 3i’s investment in the company, 3i will recognize an internal rate of return in excess of 25% and generate a 2.2× return on its investment. 3i is an international investor focused on private equity.

The acquisition is expected to close in the coming months, pending final regulatory approvals.

Source: Caterpillar