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66 www.coalage.com August 2016 suppliers news Komatsu Plans to Purchase Joy Global Joy Global announced on July 21 that its board of directors unan- imously approved a definitive merger agreement by which Japa- nese equipment giant Komatsu will acquire Joy Global in a trans- action valued at about $3.7 billion, including assimilation of Joy Global's $845 million of outstanding debt. Komatsu said it intends to operate Joy Global as a sep- arate subsidiary of Komatsu and retain Joy Global's brand names, which in addition to Joy include P&H; (surface mining equipment), Montabert (rock drills) and Continental (convey- or systems). Over the past 10 years, Joy Global also acquired and integrated equipment lines from Mining Technologies In- ternational (underground mining), LeTourneau Technologies (large wheel loaders), Stamler (feeder-breakers, underground battery-powered haulers) and Goodman-Hewitt (conveyors). Joy Global also owns several Chinese brands in the longwall equipment sector, including Huainan, Jiamusi, Jixi, Qingdao Tianxun and Wuxi Shengda. Given the company's involvement in the Chinese market, some observers believe a competing of- fer, possibly from a Chinese investor, could surface before the transaction closes. Joy Global was the entity that emerged from the bank- ruptcy of the former Harnischfeger Industries in 1999. Under terms of the Komatsu transaction, Joy Global will maintain its headquarters in Milwaukee, Wisconsin. Komatsu said it plans to leverage both companies' leading technologies to pursue product and service innovation to enhance mine safety and productivity. In addition, Komatsu said the companies em- ploy complementary products and strategies and are commit- ted to an integrated direct sales and service model. Tim Sullivan, who was CEO of former equipment build- er Bucyrus International — also based in Milwaukee — com- mented to the Duluth News Tribune that he thought, "Once the Caterpillar [acquisition of Bucyrus] happened, it was al- most inevitable that a Komatsu-Joy deal would happen." Cat- erpillar acquired Bucyrus, which had a portfolio of equipment lines similar to Joy Global's, in 2011 for $8.8 billion. Komat- su reportedly looked closely at acquiring Joy Global in 2012, but ultimately determined that the timing and the numbers weren't right. Komatsu generates annual revenue of more than $17 bil- lion, with about 25% of it from mining equipment sales. The company plans to finance the acquisition with funds on hand and bank loans. Under the terms of the agreement, Joy Global stockhold- ers will receive $28.30 per share in cash for each outstanding share of common stock held, representing a 48% premium to Joy Global's shareholders. The deal is expected to close by mid-2017, pending stockholder and regulatory approvals. ALL Expands Facilities in West Virginia The ALL Crane & Equipment Rental Corp. of Nitro, West Vir- ginia, is an area leader in heavy-haul trucking services and also functions as one of ALL's major rebuild centers. The Nitro branch also specializes in repairing and maintaining ALL's large fleet of crawler cranes — the biggest in North America. The Nitro facility acquired approximately 5.5 acres of land a mile away from their existing facility. The property includes five buildings that are being transformed to house a truck and trailer repair shop, a machine shop, a parts warehouse and of- fice, a sandblasting and painting building, and a fabrication and welding shop. Work began last November and is expected to be completed this fall. "We'll really be able to increase the level of service we provide as a result of this new space," said Chad Shamblin, general manager at the Nitro location. "We can do complete rebuilds in-house now, and we're adding staff to compensate for the increase in business. We are hiring skilled, experienced workers from the area who have become unemployed due to the decline in local mining jobs. So the expansion is a win for us, our customers, and the region." Jennmar Consummates DSI Acquisition On July, 20, Frank Calandra Inc. (FCI) provided an update to its five separate agreements with Dywidag Systems Interna- tional (DSI) originally communicated on February 2. The ac- The Laidig Reclaim Solution Laidig is proud to be the premiere, global provider of turnkey bulk storage and reclaim systems. Laidig is recognized as the industry leader in developing innovative, state-of-the-art technology to provide customized solutions for the most difficult applications. Laidig is uniquely positioned to address the storage and reclaim needs of the minerals and mining industry. 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