Joy Global Inc., a worldwide leader in high-productivity mining solutions, announced that China Mining Machinery, the Company’s wholly-owned subsidiary, has entered into a definitive agreement to acquire 100% of the outstanding shares of Wuxi Shengda, a Chinese manufacturer of longwall shearing machines, for $22.0 million, excluding closing costs. Wuxi Shengda primarily serves the markets for provincial mining companies and employs approximately 450 at its facility in Wuxi, China. Completion of the transaction is subject to the receipt of necessary regulatory approvals and other customary closing conditions and is expected to occur during the fourth calendar quarter of 2008.
Mike Sutherlin, president and chief executive officer of Joy Global Inc., said, “The acquisition of Wuxi Shengda provides us with a foothold in the China market for domestic equipment and will allow us to better serve that country’s local and regional mining industry.”
“We see opportunities to grow revenues and margins at Wuxi Shengda by enhancing its existing product offering through newer shearer technology, improving operational efficiencies and establishing our service/aftermarket capabilities,” commented Ted Doheny, president of Joy Mining Machinery, Joy Global’s underground mining business.
Joy Global Inc. is a worldwide leader in manufacturing, distributing and servicing equipment for surface mining, through its P&H Mining Equipment division; underground mining, through its Joy Mining Machinery division; and bulk material conveyor systems, through its Continental Crushing & Conveying division.