PEORIA, Illinois (

TheStreet

) --

Caterpillar

(CAT) - Get Report

agreed to acquire

MWM Holding

, a German engine manufacturer, for €580 million ($807.2 million).

Caterpillar acquired MWM from private-equity group 3i.

The acquisition, Caterpillar said Friday in a press release, will "significantly expand customer options for sustainable power generation solutions."

MWM, which stands for Motoren-Werke Mannheim, develops combustion engines for natural gas, special gases and diesel.

Caterpillar said the acquisition will close in the coming months, pending regulatory approvals.

-- Written by Joseph Woelfel

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Joseph Woelfel

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