Joy Global Reports Purchase of Certain Assets of Mining Technologies Int'l for C$51M
Joy Global Inc. (NYSE: JOY), a worldwide leader in high-productivity mining solutions, today announced that it entered into a definitive agreement to purchase certain assets of Mining Technologies International, Inc. ("MTI") for $51.0 million Canadian dollars. MTI is a Canadian manufacturer of underground hard rock mining equipment serving the North American markets and a world leading supplier of raise bore drilling consumables. The Company is acquiring substantially all of the assets associated with MTI's hard rock drilling, loaders, dump trucks, shaft sinking, and raise bore product lines. MTI's fiscal 2013 revenues associated with these product lines were approximately $90 million U.S. dollars. Excluding the impact of transaction costs and excess purchase accounting charges, the Company expects the transaction to be accretive to earnings in 2015. Completion of the transaction is subject to customary closing conditions and is expected to occur within 90 days.
“This acquisition represents an exciting opportunity as we execute on our growth strategy to expand our underground mining product lines into the hard rock markets including nickel, potash, palladium, platinum, gold and copper,” commented Ted Doheny, President and Chief Executive Officer. “We believe that MTI's broad range of complementary products, combined with Joy's proprietary technology, our global direct service team and operational excellence capabilities, will provide significant value to hard rock mining customers and our shareholders,” continued Doheny.
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