Komatsu today announced that it has completed its acquisition of Wisconsin-based surface and underground mining equipment manufacturer Joy Global.
Citing a belief that the mining industry will see a long-term rebound driven by increased demand for larger equipment in surface mining and further development of underground mining, Komatsu first announced the $3.7 billion deal in July 2016.
Though the original announcement stated Joy Global would operate as a separate subsidiary of Komatsu and would retain the Joy Global brand, Komatsu has opted to rename the 133-year-old company to Komatsu Mining Corp. Komatsu says Joy Global shares will be delisted from the New York Stock Exchange and will no longer be publicly traded.
The company’s headquarters will remain in Milwaukee and the P&H, Joy and Montabert brands that it manufactures will live on. The acquisition introduces underground mining equipment, rope shovels, draglines, drills and super-sized loaders to Komatsu’s portfolio.
Dantotsu equipment and services will continued to be offered by Komatsu following the acquisition and Komatsu says it will likely bolster Dantotsu sales thanks to the influx of new underground mining customers.
Jeffrey Dawes has been tapped to lead Komatsu Mining Corp. Dawes, previously at the helm of Komatsu Latin America, and the management team will be based in Milwaukee.
“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,” says 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 says the addition of 10,000 Joy Global employees brings its total global workforce to more than 57,000 workers.