MILWAUKEE, WI. (EYT) — Komatsu America Corp., a subsidiary of Toyko-based Komatsu Ltd., has completed its acquisition of Joy Global Inc. (NYSE: JOY) (“Joy Global”), a worldwide leader in high-productivity mining solutions.
Retaining its headquarters in Milwaukee, WI, Joy Global Inc. will be renamed Komatsu Mining Corp. and operate as a subsidiary of Komatsu. The company will continue to promote and invest in the P&H, Joy and Montabert product brands.
“Komatsu remains committed to directly servicing the global mining industry and through its products, services and technologies is focused on helping customers improve productivity and safety in their operations worldwide,” said the company in a release issued Wednesday.
“The combination of our Komatsu-brand surface mining equipment with the P&H, Joy and Montabert brands of surface and underground products will allow us to offer a complete range of mining solutions for our customers,” said Tetsuji Ohashi, President and CEO of Komatsu. “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.”
Komatsu originally announced the multi-billion dollar deal in July 2016.
The close of the transaction adds to the Komatsu team more than 10,000 people with deep knowledge and experience in the mining industry, bringing the company’s global total to more than 57,000 employees. With a focus on providing uninterrupted and unrivaled service and products for its customers, Komatsu plans to leverage the best practices of both companies while aligning the organization and operation for optimal customer support.
Komatsu Mining Corp. will be led by Jeffrey Dawes, formerly leader of Komatsu Latin America. Dawes and the management team will be based in Milwaukee, WI. Following the close of the transaction — valued at approximately $3.7 billion, including Joy Global’s outstanding indebtedness — Joy Global shares will be delisted from the NYSE and will no longer be publicly traded.
It is the latest overseas acquisition by a Japanese firm seeking growth.
Joy’s Manufacturing Plant No. 1 in Franklin, Venango County, Pa., closed at the end of June 2016, resulting in the loss of about 150 union jobs, previously reported on ExploreVenango.com. Plant No. 2, where the administration and engineering sections of the operation exist, does remain open.
Then, Joy Global spokeswoman Caley Clinton said the closure was a result of poor market conditions that culminated into a “struggling customer base” and “weak industry demand.”
