MTI is a Canadian manufacturer of underground hard-rock mining equipment serving the North American markets, and a world-leading supplier of raise bore drilling consumables.
The company is acquiring all of the assets associated with MTI's hard-rock drilling, loaders, dump trucks, shaft sinking, and raise bore product lines.
Joy Global president and CEO Ted Doheny said: “The 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.”
“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 $US90 million ($A95.8 million).
Excluding the impact of transaction costs and excess purchase accounting charges, Joy expects the transaction to be accretive to earnings in 2015.
Completion of the transaction is subject to customary closing conditions and is expected to occur within 90 days.
