The remanufacturing division of engine and equipment maker Caterpillar is buying two diesel reman businesses owned by Remy International— Franklin Power Products (FPP) and International Fuel Systems (IFS) for $150 million in cash.
Franklin Power Products re-manufactures on-highway light- and medium-duty truck diesel engines and engine components, while International Fuel Systems sells re-manufactured diesel engine components such as high pressure fuel pumps, fuel injectors and turbochargers.
“This acquisition represents an excellent strategic fit between Caterpillar’s remanufacturing operations – it increases our overall product and service offering, and will provide a platform for future growth opportunities for Cat Reman,” said Steve Fisher, Caterpillar’s vp of remanufacturing.
“We intend to facilitate growth by applying our competencies of core management, salvage technology expertise and process efficiency improvement to both Franklin Power Products and International Fuel Systems,” he added. “This will help Cat Reman to improve our range of products and services offered to customers in the on-highway segment.”
The acquired businesses will join 14 other Caterpillar remanufacturing facilities located in the U.S., Mexico, Europe and Asia. They will help Caterpillar continue recycling more than 2 billion pounds of material annually, such as engines and transmissions, into like-new components, Fisher noted.