Caterpillar to Move Headquarters to Chicago Suburb of Deerfield, Ill.

By Andrew Tangel Features Dow Jones Newswires

Equipment giant Caterpillar Inc. will move its headquarters to Deerfield, Ill., choosing the Chicago suburb over the city itself.

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The maker of construction and mining machinery on Wednesday said Deerfield's proximity to O'Hare International Airport and a commuter railroad would help Caterpillar executives stay more connected to the world. A spokeswoman also cited the suburb's proximity to a smaller airport that serves corporate jets. Caterpillar has been based in the central Illinois city of Peoria for decades.

Caterpillar will join other major corporations with offices in Deerfield, including Walgreens Boots Alliance Inc., the parent company of Walgreens drugstores, and Oreo-maker Mondelez International Inc.

Caterpillar Chief Executive Jim Umpleby said moving to Deerfield would make the company more accessible to its global customers, dealers and employees.

"This site gives our employees many options to live in either an urban or suburban environment," Mr. Umpleby said. "We know we have to compete for the best talent to grow our company, and this location will appeal to our diverse, global team."

Caterpillar said it had reached a "multiyear leasing agreement." About 100 employees will move to the office later this year, and about 300 employees are expected to be working there in 2018.

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Caterpillar decided against the city of Chicago despite Mayor Rahm Emanuel's push to recruit companies to locate their offices there. A spokesman for Mr. Emanuel said the city looked forward to working with Caterpillar.

McDonald's Corp. is among the latest companies that have announced plans to move to Chicago in recent years. Caterpillar last year opened an office in Chicago focused on data analysis.

Write to Andrew Tangel at Andrew.Tangel@wsj.com

(END) Dow Jones Newswires

April 19, 2017 18:39 ET (22:39 GMT)