Joy Global Inc. will be renamed Komatsu Mining Corp. as Komatsu America Corp. completed its acquisition of the Milwaukee-based company on Wednesday.
Komatsu Mining will retain Joy Global’s Milwaukee headquarters and will operate as a subsidiary of Japan-based Komatsu Ltd. The company will continue to promote and invest in the P&H, Joy and Montabert product brands. Tetsuji Ohashi, Komatsu president and chief executive officer, said the combination of those brands and Komastu’s surface mining equipment would make for a complete range of mining products.
“We plan to build on the strength of our shared cultures, including our unwavering belief in safety first and our passion for providing innovative solutions, to become an unrivaled mining solutions and services provider,” Ohashi said.
The close of the $3.7 billion transaction is another step away from the history that gave Milwaukee its industrial reputation. Joy Global was formerly known as Harnischfeger Industries, a name synonymous with Milwaukee manufacturing. Just as South Milwaukee-based Bucyrus International was acquired by Caterpillar, Joy Global has been acquired by a firm based outside of the region.
Komatsu also announced that Jeffrey Dawes, the former leader of its Latin American subsidiary, will lead Komatsu Mining as president and CEO. Dawes and the rest of the management team will be based in Milwaukee.
Executives leaving the company included Ted Doheny, formerly president and CEO, Jim Sullivan, formerly chief financial officer, and Sean Major, formerly executive vice president, general counsel and secretary. Ohashi personally thanked Doheny, Sullivan and Major for their work on uniting the two companies.
The departure potentially triggers change in control payments for the executives. Doheny’s was valued at $8.1 million at the end of 2015.
Komatsu plans to phase out the Joy Global company name and brand over the next few months while also rebranding facilities.
The formal integration process will take place in phases and include a six-month initial co-design period with full integration taking place within three years.
Integration teams will be looking at the optimal use of the company company’s facilities.
“There will be no immediate changes,” the company said in a post on its website. “Any changes planned through the integration process will be carefully considered and focused on building a strong future together.”
The company also said there would be no immediate changes to current community service and social responsibility activities.
Joy Global’s stock will be delisted from the New York Stock Exchange. Komatsu trades on the Tokyo Stock Exchange under ticker 6301.
