Caterpillar and Log Max of Grangarde, Sweden, announced that Log Max will acquire Caterpillar’s line of cut-to-length harvesters and forwarders used in the forestry industry.
Caterpillar currently assembles three models of forwarders and four models of harvesters in Söderhamn, Sweden. The rubber-tired equipment is used to harvest and cut trees to a desired length and to remove loads of cut logs from the forest.
"The cut-to-length business is highly specialized and requires dedicated focus," said Gerald Palmer, vice president of Caterpillar’s Wheel Loader and Excavator division, which has responsibility for forestry products. "We approached Log Max to acquire the two product lines because their strong forestry industry credentials and current operations make them an excellent choice to continue providing customers with quality machines and a high level of product support.”
The transaction does not affect any of Caterpillar’s other forestry product offerings.
Under the agreement, Log Max subsidiary company will acquire Caterpillar’s 14,352-sq.-yd. (12,000 sq m) facility in Söderhamn, where it will continue to build forestry harvesters and forwarders.
In addition to the Söderhamn facility, Log Max subsidiary company will acquire substantially all of the assets used in the assembly and service of the cut-to-length product line. This includes –– but is not limited to –– inventory, product designs and specifications, equipment and software. Caterpillar and Log Max will work closely together to ensure that current machine owners will continue to have access to service parts and ongoing product support.
Caterpillar and Log Max expect the transaction to close on Feb. 9, 2004. The financial terms of the agreement were not disclosed.
Log Max has been in mechanized forestry for more than 20 years.