Caterpillar and Ariel Corporation Create Joint Venture to Provide
Complete Pressure-Pumping Solutions to Global Oil and Gas Customers
PEORIA, Ill. and MOUNT VERNON,
Ohio, Dec. 5, 2012
/PRNewswire/ -- Caterpillar Inc. (NYSE: CAT) and Ariel
Corporation announced today the formation of a 50-50 joint venture
that will provide well service pressure pumping products for
customers in the global oil and gas industry. The combined
venture, Black Horse LLC, also announced the acquisition of pump
manufacturer ProSource of Houston,
Texas.
Caterpillar is the world's leading manufacturer of diesel and
natural gas engines for the generation, control and supply of
mechanical and electric power for the marine and petroleum
industries. Ariel Corporation is a global leader in the design and
manufacture of gas compressors. More than 40,000 Ariel compressors
are currently in use throughout the global energy industry to
extract, process, transport, store and distribute natural gas from
the wellhead to the end-user.
The acquisition of ProSource, which designs and manufactures
reciprocating pressure pumps, enables Black Horse LLC to serve the
well service market. Black Horse LLC will leverage Caterpillar and
Ariel engineering and manufacturing expertise to expand ProSource's
existing product line to better serve global oil and gas customers.
Frac pumps sold through the combined venture will be branded and
sold under the Cat name and distributed through the Cat dealer
network.
"We are thrilled to partner with Ariel to bring our petroleum
customers not just a partial solution, but a complete package,"
said Tom Frake, Caterpillar vice
president with responsibility for Marine and Petroleum Power.
"Together, with the support of our Cat dealer network, we can
provide not only a complete pressure-pumping solution, but also the
global parts and service support to maximize up-time throughout the
world. This deal significantly improves our capability to meet our
oil and gas customers' needs for reliable, sustainable power."
Under the arrangement, executives from Caterpillar's Marine and
Petroleum Power Division and Ariel Corporation will jointly lead
Black Horse LLC.
"Ariel has built an outstanding reputation by employing
technology to provide high-quality, innovative products backed by
world-class customer support. Caterpillar has done exactly the
same," said Karen Buchwald Wright,
Ariel's president and chief executive officer. "This partnership
brings together two companies with the same strong values and
commitment to customers' success. It's an exciting, new chapter for
both of
us."
The joint venture and integration of ProSource will result in
important synergies, including leveraging the companies' existing
product ranges, advanced technologies, research and development
resources, and manufacturing, distribution and customer support
capabilities.
Black Horse LLC is headquartered in Houston, Texas.
About Caterpillar:
For more than 85 years, Caterpillar
Inc. has been making sustainable progress possible and driving
positive change on every continent. With 2011 sales and revenues of
$60.138 billion, Caterpillar is the
world's leading manufacturer of construction and mining equipment,
diesel and natural gas engines, industrial gas turbines and
diesel-electric locomotives. The company also is a leading services
provider through Caterpillar Financial Services, Caterpillar
Remanufacturing Services and Progress Rail Services. More
information is available at: http://www.caterpillar.com.
About Ariel:
Established in 1966, and headquartered in
Mount Vernon, OH, Ariel
Corporation is the world's largest manufacturer of separable
reciprocating gas compressors utilized by the global energy
industry to extract, process, transport, store, and distribute
natural gas from the wellhead to the end-user. Ariel also produces
specialized API-618 reciprocating compressors for the process
industry. As a world-class manufacturer, Ariel sets the industry
standard through industry-leading research & development,
expert design & manufacturing, and unmatched customer support.
More information is available at: http://www.ArielCorp.com.
Forward-Looking Statements
Certain statements in this
press release relate to future events and expectations and are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Words such as
"believe," "estimate," "will be," "will," "would," "expect,"
"anticipate," "plan," "project," "intend," "could," "should" or
other similar words or expressions often identify forward-looking
statements. All statements other than statements of
historical fact are forward-looking statements, including, without
limitation, statements regarding our outlook, projections,
forecasts or trend descriptions. These statements do not guarantee
future performance, and we do not undertake to update our
forward-looking statements.
Caterpillar's actual results may differ materially from those
described or implied in our forward-looking statements based on a
number of factors, including, but not limited to: (i) global
economic conditions and economic conditions in the industries and
markets we serve; (ii) government monetary or fiscal policies
and infrastructure spending; (iii) commodity or component
price increases and/or limited availability of raw materials and
component products, including steel; (iv) our and our
customers', dealers' and suppliers' ability to access and manage
liquidity; (v) political and economic risks and instability,
including national or international conflicts and civil unrest;
(vi) our and Cat Financial's ability to: maintain credit
ratings, avoid material increases in borrowing costs, and access
capital markets; (vii) the financial condition and credit
worthiness of Cat Financial's customers; (viii) inability to
realize expected benefits from acquisitions and divestitures,
including the acquisition of Bucyrus International, Inc.;
(ix) international trade and investment policies;
(x) challenges related to Tier 4 emissions compliance;
(xi) market acceptance of our products and services;
(xii) changes in the competitive environment, including market
share, pricing and geographic and product mix of sales;
(xiii) successful implementation of capacity expansion
projects, cost reduction initiatives and efficiency or productivity
initiatives, including the Caterpillar Production System;
(xiv) sourcing practices of our dealers or original equipment
manufacturers; (xv) compliance with environmental laws and
regulations; (xvi) alleged or actual violations of trade or
anti-corruption laws and regulations; (xvii) additional tax
expense or exposure; (xviii) currency fluctuations;
(xix) our or Cat Financial's compliance with financial
covenants; (xx) increased pension plan funding obligations;
(xxi) union disputes or other employee relations issues;
(xxii) significant legal proceedings, claims, lawsuits or
investigations; (xxiii) compliance requirements imposed if
carbon emissions legislation and/or regulations are adopted;
(xxiv) changes in accounting standards; (xxv) failure or
breach of IT security; (xxvi) adverse effects of natural
disasters; and (xxvii) other factors described in more detail
under "Item 1A. Risk Factors" in our Form 10-K filed
with the SEC on February 21, 2012 for the year ended
December 31, 2011. This filing is available on our
website at www.caterpillar.com/secfilings.
SOURCE Caterpillar Inc.