Earthmoving equipment giant Caterpillar is looking to sell its expanding third-party logistics business, a part of $2.2 billion Caterpillar Logistics Services.
The $42 billion manufacturer said it is examining a "range of strategic options" for its 3PL business, excluding its internal logistics and distribution operations.
Caterpillar plans to focus on growth opportunities in its core business, said Steve Larson, chairman and president of Cat Logistics and a Caterpillar vice president.
"The company has decided to consider its options for the future of this business," Larson said. Those options include a sale or a restructuring within Caterpillar.
Caterpillar said its internal manufacturing logistics and transportation operations and brand parts distribution network are not part of the strategic review.
Cat Logistics is the seventh largest U.S.-based 3PL, ranked by revenue, on The Journal of Commerce list of Top 40 3PLs, researched by SJ Consulting Group, Pittsburgh.
The manufacturer turns to the market at a good time. A surge in logistics and transportation acquisitions and mergers heralds a stronger economy.
Caterpillar's third-party logistics business, which serves more than 50 external customers, is extending its supply chain reach in the U.S. and overseas.
Cat Logistics is building a 450,000-square-foot parts distribution center in Dubai. It added a distribution center in Shanghai in 2006 and in Moscow in 2007.
Last fall Cat Logistics opened a 9,000-square-foot logistics center in Suzhou, China, to support Caterpillar's expanding manufacturing footprint in Asia.
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