Acquisitions · Mining equipment
Komatsu buys US mining equipment maker Joy Global for about $3.7 billion
- Buyer
- Komatsu (via Komatsu America) (Tokyo)
- Target
- Joy Global, Milwaukee, Wisconsin
- Value
- About $3.7B including debt ($28.30 a share in cash; about ¥303.6B)
- Status
- Agreed on July 21, 2016; completed on April 5, 2017.
- Date
- 2016-07-21
Komatsu agreed to buy Joy Global, a mining equipment maker based in Milwaukee, Wisconsin, for $28.30 a share in cash, about $3.7 billion including debt. The purchase was made through its US subsidiary, Komatsu America. Joy Global was later renamed Komatsu Mining Corp.
Why it matters
The deal adds underground mining machines and large surface mining shovels to Komatsu's range of mining trucks and excavators, broadening what it can offer mine operators.
Deal terms
The $28.30 price was 48% above Joy Global's 90-trading-day volume-weighted average closing price before July 21, 2016. The deal had no financing condition. It required approval from Joy Global's stockholders, clearance under US antitrust law and approvals in some other countries. Media reports put the equity value at about $2.89 billion.
Joy Global's business
Joy Global had 12,000 employees in 20 countries and sold equipment under the P&H, Joy and Montabert brands for energy, hard rock and industrial minerals mining. Its chief executive cited weak mining markets and changes in the US and Chinese coal industries in backing the sale. Komatsu said it would run the company as a separate subsidiary and keep its brands.
Sources
Kakehashi M&A News home
