Caterpillar buys Italian industrial hose maker Rapisarda

By Liz White, UT staff

Peoria, Illinois-Caterpillar Inc. has bought Rapisarda Industries, a leading Italian industrial hose manufacturer, and says the move

"will expand its hose-manufacturing capabilities worldwide."

This deal follows on from an eleven-year-old joint venture agreement between the two companies, said a Caterpillar statement on the acquisition. Now Caterpillar has bought a majority interest in the business, Rapisarda will become a wholly owned subsidiary of the Peoria-headquartered maker of construction and mining equipment and engines.

"This acquisition demonstrates Caterpillar's commitment to this growing business," said Chris Schena, vice president of Caterpillar's Motion and Power Control Division, quoted in the company statement. "As one of the world's leading makers of low- and medium-pressure hose, Rapisarda is critical to Caterpillar machine growth and key to our non-Cat business growth objectives."

And the benefit for Rapisarda is "to become a much larger part of Caterpillar and to use our 90 years of experience together with Caterpillar's international organisation to grow our business and satisfy our customers," said Giorgio Benetti, general manager of Rapisarda Industries.

The deal can be seen as part of a wider move to consolidation in the industrial hose sector, with global production capability becoming more important, and smaller, regional players finding it harder to survive. Transatlantic links are also in evidence, with Goodyear, for example, signing a strategic agreement in hydraulic hose with Italian hose maker Alfagomma in 2003.

Rapisarda employs about 430 people at four plants in Italy and one in Tunisia. The acquisition will be take effect 1 Jan 2006, said Caterpillar.

Caterpillar's global manufacturing presence for its industrial hose and coupling products includes five plants in the US and one each in the UK, Western Europe and Japan.

The group said that, Rapisardsa, under Caterpillar's ownership, will retain the Rapisarda name "in recognition of its strong reputation and brand equity in the hose and coupling industry."

With 2004 sales and revenues of $30250 million, Caterpillar is a leading global provicer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines for infrastructure projects worldwide.

Milan-headquartered Rapisarda has been making rubber hose since 1991, with a product range including hydraulic, industrial and automotive hose, industrial belts, PVC hose and rubber sheeting, according to the group's website.