Milwaukee-based mining equipment manufacturer, Joy Global Inc. was bought out by Japanese rival company, Komatsu for $2.9 billion. This is Komatsu’s biggest-ever acquisition.
More details of the sale haven’t been released yet. The Milwaukee Journal Sentinel reported on this breaking news story:
Milwaukee based Joy Global Inc. is being acquired by Komatsu Ltd., the second-biggest mining and construction equipment maker in the world, for $2.89 billion.
Komatsu will pay $28.30 a share in cash, it said Thursday in a statement, an offer 20% higher than Joy’s closing price the day before. It will be Komatsu’s biggest-ever acquisition, bolstering its ability to compete with larger rival Caterpillar Inc.
Joy is the largest independent maker of underground mining equipment and has long been viewed as a potential target for Komatsu, which manufactures dump trucks and large excavators for companies such as Rio Tinto Group.
Altogether, Joy Global employs about 1,000 people in Milwaukee and 12,000 worldwide.
The company says it intends to keep its headquarters in Milwaukee, at least for now. Company managers are meeting with their employees this morning to discuss the sale.
The mining equipment industry has some of the highest-paying jobs in Milwaukee manufacturing, with annual pay sometimes topping $80,000.
For more, visit, Milwaukee Journal Sentinel