Joy Global acquires Montabert

first_imgDuring the presentation of Joy Global’s second quarter results, Ted Doheny, President and Chief Executive Officer announced that “despite tough markets, we remain committed to taking prudent actions to improve our business during this cyclical downturn and bolster our strategic position to be a first tier supplier to the underground hard rock mining market. In this regard, we are pleased to announce our acquisition of Montabert from Doosan Holding France. Montabert specialises in the design, production and distribution of high quality hydraulic rock breakers, pneumatic equipment, drilling attachments, drifters and related parts and tools. This acquisition represents an important step in expanding product and service capabilities for hard rock mining, tunnelling 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 centre infrastructure providing long-term value.”The Company closed on its purchase of Montabert on June 1, 2015 for €110 million, subject to a working capital adjustment. Net sales for the last twelve months ended March 31, 2015 for Montabert were approximately $100 million.This follows Joy Global’s acquisition of Mining Technologies International in 2014. Montabert (see IM January 2015 issue) was the first company to produce a hydraulic drifter and one of the first to bring a hydraulic breaker to the market and continues to be a leader in both technologies. In its drilling department, the company has refined its focus down to the drifters alone. It recently redefined its leadership in hydraulic drifters with a new range.Doheny also noted that “while our operational execution in the quarter was in line with our expectations, the incoming order rate, in particular in the US coal and global copper markets slowed as customers further reduced capital expenditures and deferred maintenance on their mining equipment fleets. We continue to invest in our service business to respond quickly and more efficiently to our customer’s needs and are taking steps to accelerate the optimisation of our global manufacturing and service footprint.”last_img read more