WesTrac China Limited, a Seven Group Holdings Ltd subsidiary, has agreed to acquire Caterpillar Global Mining's businesses in north-eastern China. The said distribution and support businesses are located in provinces where WesTrac operates, according to Business Spectator.
WesTrac told the Australian Securities Exchange in a statement that it expects to begin providing, service, support, and sales for expanded mining products in the said regions after the transaction is closed, the report said.
The acquisition deal is valued at approximately USD130 million. Seven Group will fund the deal through a five-year debt facility, the report detailed.
WesTrac estimates the acquired distribution and support businesses to generate annual revenues in the range of USD210 million to USD250 million for the 2015 fiscal year, Business Spectator reported.
Seven Group said of the deal: "The acquisition is expected to be largely earnings per share neutral for the remainder of the financial year ending 30 June 2014, and accretive thereafter."
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