Rockwell Sells Kato Unit

Rockwell International Corp. has sold its Kato Engineering unit in Minnesota to Caterpillar Inc. for an undisclosed price, the companies said Thursday.

The deal will enable Caterpillar, based in Peoria, Ill., to broaden its line of electric power generators.

Kato, which has 560 employees and posted sales of $70 million for the 1997 fiscal year, is part of Costa Mesa-based Rockwell’s automation business unit.

Caterpillar is the world’s largest maker of construction and mining products, natural gas engines and industrial gas turbines. It also produces a wide range of power generators. It joined with St. Louis-based Emerson Electric Co. in 1996 to make diesel-powered generators in Europe.