At the end of August, JoyGlobal announced it would sell the drilling products business of LeTourneau to Cameron International Corp. for $375 million in cash. The transaction had been approved by both companies' boards of directors. In May, Joy Global acquired LeTourneau Technologies from Rowan Cos. for $1.1 billion in cash.
LeTourneau's drilling products business is a designer of offshore jack-up drilling rigs as well as a manufacturer of the primary components for these rigs. It is also a manufacturer of drilling equipment for large land and offshore rigs. The LeTourneau facilities in Houston, Texas and Vicksburg, Miss., will be part of this transaction while the Longview, Texas facility will remain with Joy Global.
“Cameron's leading presence in the oil and gas industry will allow Cameron to grow and develop LeTourneau's drilling applications with greater speed and efficiency," said Mike Sutherlin, CEO, JoyGlobal. “For Joy Global, the divestiture enables us to focus on our core mission of mining equipment and the proceeds will expand our funding options to complete the acquisition of International Mining Machinery (IMM).
IMM is a leading designer and manufacturer of underground longwall coal mining equipment in China. It has strong domestic market positions in roadheaders and longwall shearing machines, and is growing the share of its armored-face conveyor and electric control systems businesses. In addition to original equipment, IMM provides aftermarket parts and services through a broad network of service and warehouse locations.