Caterpillar and Ariel Corporation have created a joint venture to provide complete pressure pumping solutions to international oil and gas customers.
The two companies have joined forces in a 50-50 venture to provide well service pressure pumping products around the world. The combined venture, Black Horse LLC, also announced the acquisition of pump manufacturer ProSource in Houston, Texas.
The acquisition of ProSource, which designs and manufactures reciprocating pressure pumps, wioll allow Black Horse to serve the well-service market. Black Horse will leverage Caterpillar and Ariel engineering and manufacturing expertise to expand ProSource’s existing product line. Frac pumps sold through the new joint venture will be branded and sold under the Cat name and distributed through the Cat dealer network.
“We are thrilled to partner with Ariel to bring our petroleum customers not just a partial solution, but a complete package,” said Tom Frake, Caterpillar vice president responsible for Marine and Petroleum Power. “Together with the support of our Cat dealer network, we can provide not only a complete pressure-pumping solution, but also the global parts and services support to maximize up-time throughout the world. This deal significantly improves our capability to meet our oil and gas customers’ needs for reliable, sustainable power.”
Under the arrangement, executives from Caterpillar’s Marine and Petroleum Power Division and Ariel Corporation will jointly lead Black Horse LLC.
“Ariel has built an outstanding reputation by employing technology to provide high-quality, innovative products backed by world-class customer support. Caterpillar has done exactly the same,” said Karen Buchwald Wright, Ariel’s president and chief executive officer. “This partnership brings together two companies with the same strong values and commitment to customers’ success. It’s an exciting, new chapter for both of us.”
The joint venture and integration of ProSource will result in important synergies, including leveraging the companies’ existing product ranges, advanced technologies, research and development resources, and manufacturing, distribution and customer support capabilities.
