Australian investment company Seven Group Holdings (SGH) – which owns 47% of Coates Hire – has agreed to sell its Chinese Caterpillar dealership, WesTrac, to Lei Shing Hong Machinery (LSHM), for AU$540 million ($428 million).

Lei Shing Hong Machinery is a subsidiary of Chinese conglomerate Lei Shing Hong Ltd (0238.HK) which distributes Caterpillar (CAT.N) earthmoving, mining and construction equipment throughout eastern China and Taiwan.

WesTrac China began operating in 2001 in territories including Shanxi, Hebei, Liaoning, Inner Mongolia, Heilongjang, Jilin, Beijing, and Tianjin. The company’s location in Tianjin, which opened in 2005, is a rebuild centre, and is said to be the largest construction, machinery and power systems centre of Caterpillar products in China.

The deal allows Seven Group to focus on supplying an infrastructure boom in the east coast Australian states, which the company expects to peak by 2021.