PEORIA, Ill. (Dec. 22)—Heavy equipment maker Caterpillar Inc. has bought Rapisarda Industries S.r.l., a Milan, Italy-based industrial hose maker, to expand its hose-manufacturing capabilities worldwide.
This deal, for an undisclosed sum, follows from an 11-year-old joint venture agreement between the two companies, Caterpillar said. Now that Caterpillar has bought a majority interest in the business, Rapisarda will become a wholly owned subsidiary of the Peoria-based maker of construction and mining equipment and engines.
"This acquisition demonstrates Caterpillar´s commitment to this growing business," said Chris Schena, vice president of Caterpillar´s Motion and Power Control Division. "As one of the world´s leading makers of low- and medium-pressure hose, Rapisarda is critical to Caterpillar machine growth and key to our non-Cat business growth objectives."
The benefit for Rapisarda is "to become a much larger part of Caterpillar and to use our 90 years of experience together with Caterpillar´s international organization to grow our business and satisfy our customers," said Giorgio Benetti, general manager of Rapisarda Industries.
Rapisarda, which has been making rubber hose since 1919, employs about 430 at four plants in Italy and one in Tunisia. The company also makes hydraulic, industrial and automotive hose, industrial belts, PVC hose and rubber sheeting. The acquisition will be take effect Jan.1.
Caterpillar´s global manufacturing presence for its industrial hose and coupling products includes five plants in the U.S. and one each in England, western Europe and Japan.
The group said that under Caterpillar´s ownership, the firm will retain the Rapisarda name "in recognition of its strong reputation and brand equity in the hose and coupling industry."