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Joy To Acquire Canadian Hard Rock Mining Specialist

Posted on April 11, 2014

In an apparent bid to broaden its scope in underground hard rock mining, Milwaukee-based Joy Global Inc. announced that it has entered into a definitive agreement to purchase certain assets of Mining Technologies International, Inc. (MTI) for $51 million Canadian (US$46.4 million). Completion of the transaction is subject to customary closing conditions and is expected to occur within 90 days.

MTI is a Canadian manufacturer of underground hard rock mining equipment serving the North American markets and a global supplier of raise bore drilling consumables. Joy is acquiring substantially all of the assets associated with MTI's hard rock drilling, loaders, dump trucks, shaft sinking and raise bore product lines.

"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," commented Ted Doheny, president and chief executive officer of Joy. "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."

MTI's fiscal 2013 revenues associated with these product lines were approximately US$90 million. Excluding the impact of transaction costs and excess purchase accounting charges, Joy said it expects the transaction to be accretive to earnings in 2015.