Illinois-based Caterpillar will acquire the core brand in the process of buying parent company Johan Walter Berg AB.
Berg Propulsion is a leading manufacturer of propulsion systems and marine controls for ships.
This deal sees Caterpillar move from selling only engines and generators to providing complete marine propulsion package systems.
Headquartered in Öckerö Islands, Sweden, Berg has designed and manufactured heavy-duty marine thrusters and controllable pitch propellers since 1929. Its systems are used in maritime applications throughout the world that require precise maneuvering and positioning.
Tom Frake, Caterpillar Vice President with Responsibility for the Marine and Petroleum Power Division, said: “Berg is one of the most highly regarded brands in the marine industry.
"Our team will now be able to provide worldwide Caterpillar support to marine operators for a complete, optimised propulsion package, including bow thrusters, gear boxes and shaft alternators.
"In addition, Berg’s expertise, focus on maximising customers’ uptime and minimising operation cost aligns well with Caterpillar’s value proposition.”
Berg will become part of the Caterpillar Marine and Petroleum Power Division, which supplies diesel and natural gas engines for the generation, control and supply of mechanical and electric power for the marine and petroleum industries.
Håkan Svensson, Berg’s Chief Executive Officer, said: “This marks the beginning of an exciting new chapter in our company’s history and is a chance to become part of the strongest brands in our industry.
"We look forward to developing and providing an even greater portfolio of products and services for ship owners around the world."
Berg’s thrusters, propellers and control systems will be rebranded as Caterpillar soon after the close of the deal, which is expected later in 2013.