Caterpillar Inc. (CAT) plans to sell a majority stake in its third-party logistics division to private equity firm Platinum Equity for roughly $750 million.
Under the agreement, Caterpillar will retain a 35% stake in the business. Further financial details weren't disclosed.
Caterpillar Group President Stu Levenick said the planned sale reflects the company's aims to focus on its core businesses. The deal is expected to close in the third quarter.
The world's biggest maker of bulldozers, excavators and other earth-moving machinery last month reported its first-quarter earnings rose 29% as improved sales of construction machinery in the U.S. and global demand for mining equipment offset weaker sales in China, Brazil and Europe.
The company also raised its forecast for the year, although some investors expected a bigger increase and fretted that a wobbly global economy will leave Caterpillar with too much inventory and production capacity.
Shares were recently up 1.2% to $97.15 in premarket trade. The stock is up 6% since the start of the year.
-By Mia Lamar, Dow Jones Newswires; 212-416-3207; firstname.lastname@example.org