Komatsu to acquire Joy Global

The equipment company Komatsu America Corp., a subsidiary of Komatsu Ltd., has reached a deal to acquire the mining equipment company Joy Global for $3.7 billion in an all-cash transaction. Following the completion of the deal, Joy will operate as a separate subsidiary of Komatsu.

The companies say they will align their respective organizations and operations for optimal customer support from Joy Global’s Milwaukee headquarters.

The deal is expected to close by the middle of 2017.

In a news release, Joy Global says the products and services of both companies are highly complementary and the combined organization will continue to focus on safety, productivity and life-cycle cost improvement for customers.

Komatsu sayss it plans to leverage both companies’ technologies to pursue product and service innovation to enhance mine safety and productivity. In addition, the companies employ complementary strategies and are committed to an integrated direct sales and service model.

“This is a compelling transaction that delivers substantial and certain value to our stockholders as well as expanded options for our customers and employees going forward,” says Ted Doheny, president and CEO of Joy Global. “We believe this is the right partnership to meet the evolving needs of our customers while furthering our ability to lead the mining industry with game-changing technologies and best-in-class products.

“Our companies share similar cultures and values,” Doheny continues, “and we expect many Joy Global employees to benefit from exciting career opportunities as part of an even larger, more diversified company. On behalf of the Joy Global Board and management team, we thank our dedicated employees for their continued hard work and commitment to solving mining’s toughest challenges.”