Caterpillar Inc. and Ariel Corporation announced the formation of a 50-50 joint venture that will provide well service pressure pumping products for customers in the global oil and gas industry. The combined venture, Black Horse LLC, also announced the acquisition of pump manufacturer ProSource of Houston, Texas. The acquisition of ProSource, which designs and manufactures reciprocating pressure pumps, enables Black Horse LLC to serve the well service market. Black Horse LLC will leverage Caterpillar and Ariel engineering and manufacturing expertise to expand ProSource's existing product line to better serve global oil and gas customers. Frac pumps sold through the combined venture will be branded and sold under the Cat name and distributed through the Cat dealer network. Under the arrangement, executives from Caterpillar's Marine and Petroleum Power Division and Ariel Corporation will jointly lead Black Horse LLC. 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. Black Horse LLC is headquartered in Houston, Texas.

Ariel Corporation announced its opening last month of a new parts distribution center. The 58,000 square foot facility will increase Ariel's order processing efficiency and is expected to be a vital link in the evolution of Ariel's new unit and aftermarket parts distribution network. The new distribution center, located near Ariel's world headquarters in Mount Vernon, Ohio, was designed to consolidate finished goods from several of Ariel's facilities -- helping to reduce transportation costs for the company, while also increasing distribution efficiency and speed. The new distribution center also features offices for Ariel's Buyers, Spare Parts Technicians and supervisory staff. Ariel's Distribution Center features equipment and material handling technology. This new technology includes new storage layouts, including a 7,000 square foot mezzanine to assist with vertical storage, a new storage unit for valves, a 6,000 location flow rack, a spiral conveyor, and mobile scanners for all employees. This new order fulfillment system resulted in responsibility changes for Ariel's employees. In addition to the increase in efficiency, the new distribution center is also helping to maintain the standard Ariel has always represented: putting the customer first.