Caterpillar Inc. has reached an agreement to sell Carter Machinery Company Inc., Cat announced on Feb. 16.

Carter Machinery is a Caterpillar dealership headquartered in Salem, Va., and has operations and stores covering Virginia and nine counties in southeast West Virginia.

The current senior management of Carter Machinery, which led the buy-out of Carter Machinery from Caterpillar, will remain in place.

Jim Parker, a retired Caterpillar vice president, will become CEO of Carter Machinery and will be the principal owner going forward.

Caterpillar has owned Carter Machinery since 1988. It is the only Caterpillar dealership in the United States that is not independently owned.

“Over the last 20 years, Carter Machinery has consistently been an excellent performing dealership, but as we updated our corporate strategy in 2010, it was clear that continued Caterpillar ownership did not align with our core strategic plans,” Stu Levenick, Caterpillar group president with responsibility for customer and dealer support, said in a written press statement. “We are pleased the management team will remain with the dealership and believe Jim Parker’s strong customer-focus makes him an ideal fit for this business.

“With this transition, Carter Machinery customers should expect to receive the same high level quality, service and support that they have come to expect from Carter Machinery and Caterpillar products,” Levenick added.

The sale is expected to close in the first quarter of 2011 and is subject to appropriate regulatory reviews and approvals.