Caterpillar Buys Krupp's Diesel Unit

12/19/96

Caterpillar Inc. announced Monday that it would purchase the MaK diesel motor unit of German steelmaker Krupp. Caterpillar officials said that MaK would continue to operate as an independent company, providing a line of ship engines and medium-sized motors.

According to Donald Western, head of Caterpillar's motor division, "MaK has excellent growth potential. Caterpillar can offer the finances and resources to help MaK with new products, new markets and new technologies."

Last year, MaK reported sales of $349 million, while Caterpillar's motor division yielded $4 billion, about a quarter of the company's total sales.

Ryan Houlette -- The Auto Channel