Milwaukee-based mining equipment specialist, Joy Global, has bought earthmoving OEM LeTourneau from Rowan Companies.
LeTourneau onshore rig Image: LeTourneau |
The deal, worth $1.1bn, will provide a significant boost to Joy's OEM portfolio with LeTourneau leading designers in offshore jack-up drilling rigs and component manufacture as well as other land and offshore rig products, while its mining products also delivered a healthy £259m of the company's $815m total gross revenue for 2010.
Joy, which specialises in mining vehicle manufacture, including the largest wheel loaders in the sector and the only electric-powered mining loaders in the world, was also keen to absorb LeTourneau's front-end loader products into its range.
According to Joy, the acquisition comes at a positive time in the offshore and land rig lifecycle, with new orders - particularly for jack-up rigs - starting to accelerate globally. The primary focus of the new structure is for growth, although Joy estimates some $40m in synergy savings.