Perkins and its affiliates to purchase IAT’s share ownership of the 400 Series joint venture
After a 23-year relationship between IHI Agri-Tech Corporation (IAT) and Perkins Engines Company Limited, a wholly owned subsidiary of Caterpillar Inc., Perkins and its affiliates have agreed to purchase IAT's remaining share of the joint venture.
For over two decades, the joint venture has delivered a powerful range of engines in the 0.5–2.2 litre space. Manufactured in the U.K., U.S., China and Japan, there are currently more than 1 million Perkins 400 Series engines at work around the world, powering a wide range of off highway equipment.
The deal will see Perkins and its affiliates acquire IAT's remaining share of the joint venture – the engines business of IAT which will include the transfer of some machining operations owned by IAT's subsidiary based in Jiangsu Province, PRC and intellectual property for the 0.5–2.2 litre engine range.
This initiative will streamline the business, improve responsiveness to changing customer needs, and enable innovation in commercial as well as technical offerings. We will be working with customers of IAT's engines business to provide continuity of products and services.
Perkins President Steve Ferguson commented:
"We see growth potential in compact engines to power small equipment such as mini excavators, generators, skid-steer loaders and access platforms. Perkins is well positioned to be the professional partner to the world's best-known industrial, machinery and electric power brands. This deal confirms our commitment to the sector and adds to our already significant investment in a full range of Perkins products to meet EU Stage V emissions standards.
"Small engines are an integral offering in Perkins' engine portfolio and we will continue to maximize customer value by offering cost-competitive solutions.
"Perkins will manage through the transition period and will build on the foundation of the joint venture as it continues to develop the next generation of 0.5–2.2 litre diesel engines to meet current and future customers' needs."