Caterpillar Remanufacturing Services (Cat Reman) has agreed to buy French-based remanufacturer of automotive and industrial engines, transmissions and components, Eurenov SA.

Eurenov operates from Chaumont, France, and has a smaller operation in Radom, Poland.

Cat Reman general manager Steve Fisher said buying Eurenov would give Cat Reman greater access to the European automotive and industrial engine and transmission remanufacturing market, with potential for expansion into Eastern Europe.

"Eurenov is a strong strategic fit for our company. Its customer relationships and technical knowledge, combined with Caterpillar's know-how and expertise, will strengthen our position in this growing market," he said.

Eurenov chairman and chief executive officer Denis Tremeau said Cat Reman's remanufacturing expertise and global reach would enhance Eurenov's ability to meet customer needs. The acquisition of Eurenov would occur in two phases with Cat Reman obtaining full ownership in 2007.

Last year Caterpillar Inc, one of the world's largest remanufacturers, announced it would offer Cat Reman's capabilities to original equipment manufacturers (OEMs) in other industries, including automotive and industrial products.

Eurenov manufactures a variety of products, including remanufactured engines, new and remanufactured transmissions and remanufactured fuel pumps for OEM clients.