Milwaukee-based mining equipment manufacturer Joy Global Inc. has agreed to acquire certain assets of Ontario-based Mining Technologies International Inc. for $46.5 million.
MTI manufactures hard rock mining equipment for underground application, specializing in raise bore drilling consumables. Its customers are across North America.
Joy Global will purchase substantially all of MTI’s assets associated with hard rock drilling, loaders, dump trucks, shaft sinking and raise bore product lines. The 2013 revenues for these product lines were about $90 million.
The transaction is expected to close, subject to customary closing conditions, within 90 days. Joy Global expects it will be accretive to 2015 earnings, excluding transaction costs and excess purchase accounting charges.
“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,” said Ted Doheny, president and chief executive officer of Joy Global. “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.”