03.08.2010

Finning takes over CAT distribution in Ireland

Canadian based Finning International has been appointed as the Caterpillar dealer for Northern Ireland and is finalising details to take over in the Irish Republic.

The appointment for the North was confirmed yesterday after the company completed an agreement with the Northern Ireland administrators of McCormick McNaughton - the previous dealer - to acquire certain dealership related assets in a deal worth around £3.1 million.

The southern appointment is waiting on the outcome of negotiations between Finning and the Irish receiver. Both operations are likely to become part of the company’s UK operations.

Finning says that “discussions are at an advanced stage with the Receiver of Ireland and we anticipate these will be concluded in the coming days.”

Fining International’s chief executive Mike Waites, said: "We are pleased to add this neighbouring territory to our established U.K. operations. We will be able to leverage our existing infrastructure and service expertise to complement our U.K. dealership. Being awarded the dealer territory for Northern Ireland speaks highly of Finning's relationship with Caterpillar."

Neil Dickinson, managing director, Finning UK added: "As part of this agreement, we acquire an active power systems portfolio, as well as access to opportunities in construction. We look forward to providing unrivalled service to customers in our new territory,"

Finning International is the world's largest Caterpillar equipment dealer, based in Vancouver, British Columbia, the company operates in Western Canada, Chile, Argentina, Bolivia, Uruguay, and the United Kingdom.

Vertikal Comment

This is an excellent deal for Finning UK and a far more comfortable and logical investment than the one it had in Hewden. The deal should add considerably to its revenues and capabilities, while spreading its UK management overhead and back office costs over a larger business.