Mining specialist Joy Global pays $123m for equipment maker Montabert
Acquisition relieves Doosan of Montabert, which had sales of approximately $100m in the last fiscal year
Hydraulic breaker manufacturer Montabert has been purchased by Joy Global, a player in the underground mining industry, from Doosan, for $123 million (€110m).
Montabert had sales of approximately $100m in the fiscal year ending March 31, 2015.
Despite tough conditions in the world’s mining markets, Joy Global is taking action to improve its business in the underground hard-rock mining market, said Ted Doheny, its president and CEO.
“This acquisition represents an important step in expanding product and service capabilities for hard rock mining, tunneling and rock excavation, further diversifying the company’s commodity and end market exposures.
“The Montabert product line will complement our existing fleet of hard rock equipment and leverages our global service center infrastructure providing long-term value to our shareholders,” said Doheny.
The announcement came as part of Joy Global’s release of its second-quarter operating results. The company reported sales of $810m during the Q2, a fall of 13% from the same quarter in 2014.
Montabert was founded in 1921 in Saint-Priest (Rhône), in France. It was bundled into the sale of Bobcat by Ingersoll-Rand to in 2007, when Doosan paid $4.9bn in cash for Bobcat, as well as Montabert and Geith.
At the time it was the biggest ever overseas acquisition by a South Korean firm.
