MILWAUKEE, Wis. (WTAQ) - One of Milwaukee’s largest industries is being sold.
Caterpillar said this morning it would acquire Bucyrus International of South Milwaukee for $7.6 billion dollars, plus $1 billion of Bucyrus debt.
Government regulators and Bucyrus stockholders must still approve the deal. If that happens, it could close by middle of next year.
Bucyrus president Tim Sullivan said his firm agreed to the acquisition when Caterpillar promised to move the headquarters of its mining business to Milwaukee.
Sullivan said his firm found, “an excellent partner” and a “first-rate global company.”
Caterpillar, which is based in Peoria Illinois, is the world’s largest maker of construction and mining equipment. It said the purchase of Bucyrus would expand its mining business, and take advantage of rapid growth in emerging world markets.
Bucyrus has over 10,000 employees at 100 plants throughout the globe. The firm said in October it was adding 515 jobs with the help of $20 million in state income tax credits.
The deal would give Bucyrus stockholders $92 a share – almost one-third more than Friday’s closing price.