Komatsu to acquire Joy Global in $3.7B deal

Komatsu America Corp. will acquire Joy Global Inc. in a transaction valued at about $3.7 billion.

Komatsu intends to operate Joy Global as a separate subsidiary of Komatsu and retain the Joy Global brand names. The companies will align the new organization and operation from Joy Global’s headquarters in Milwaukee, Wis.

“This is a compelling transaction that delivers substantial and certain value to our stockholders, as well as expanded options for our customers and employees going forward,” says Ted Doheny, president and CEO of Joy Global. “We believe this is the right partnership to meet the evolving needs of our customers while furthering our ability to lead the mining industry with game-changing technologies and best-in-class products.

“Joy Global’s board of directors, in making its determination, considered the challenging market conditions the company believes are likely to persist,” Doheny adds. “The mining industry continues to face cyclical headwinds from oversupplied commodities and reduced end-user demand resulting in cash flow restrictions for most producers, creating an increasingly challenging environment.”

Joy Global provides equipment, systems and direct services to the global mining industry. The company employs 12,000 people in 20 countries.

Komatsu, which is based in Japan and employs more than 47,000 people globally, provides industrial machinery and vehicles, logistics and electronics.