Cat steps in to buy Fabick dealership amid family spat

Fabick, which has been a Cat dealer for more than 100 years, covers portions of Missouri, Illinois, the entire state of Wisconsin, and the Upper Peninsula of Michigan.

Cat said the motivation behind the unusual move was to “support a seamless transition of Fabick ownership while maintaining the strong service and local support customers know today”.

It comes after Fabick Cat’s chair and CEO Doug Fabick was ousted from the company in 2022. His cousin Jeré Fabick, who had served as president since 2015, was appointed chairman, CEO, and dealer principal, having been involved in the business for 40 years.

That triggered a legal battle, with Doug Fabick refusing to sell his majority stake in the company following his removal as dealer principal, arguing that he was not “properly removed”.

The company also promoted John Fabick, previously a senior vice president of the company with nearly 50 years in the business to president. And it had planned to expand the role of Kelli Fabick, John’s daughter with the goal of extending the leadership of the company to a fifth generation.

Doug Fabick lost an appeal against a St. Louis County judgement in the company’s favour over a stock buy-sell agreement in 2024.

He was later arrested in Palm Beach, Florida, in February this year, for two counts of aggravated assault after police said he pointed a loaded handgun at officers during a welfare check at his home. The case was closed and he was given a year’s probation after pleading guilty to a misdemeanour charge of “improper exhibition of dangerous weapons or firearms” in May this year.

Announcing Cat’s acquisition of the Fabick dealership, Cat chairman and CEO Joe Creed said, “We look forward to continuing to work with the Fabick team to build on a century of success, further strengthen the customer experience and drive long-term growth across the service territory.”

Jeré Fabick added, “We’re incredibly proud of our team and the customer relationships we’ve built over the past 100 years.”

The agreement requires approval by regulatory authorities and is subject to other customary closing conditions. The transaction is expected to close within 30 days.