The Jordan Company has agreed to sell Hong Kong-listed International Mining Machinery Holdings (IMM) to US company Joy Global, which provides high productivity mining solutions.
According to a statement, Joy Global will pay HK$8.5 per IMM share for 41 percent of its issued share capital. The total cash consideration is valued at approximately $585 million.
The statement also noted that once the purchase is completed, which is subject to approval from the Anti-monopoly Bureau of China’s Ministry of Commerce, Joy Global would then be required to make an offer for the remaining 59 percent of IMM shares.
In June 2006, Jordan and co-investors acquired 100 percent of Jixi Coal Mining Machinery and 100 percent of Jiamusi Coal Mining Machinery to form IMM. Jixi and Jiamusi were acquired from state-owned enterprise Heilongjiang Coal Mining Machinery. According to a Jordan statement at the time, the acquisitions were funded by The Resolute Fund, which closed on $1.5 billion in 2002.
However, it is unclear how much the firm paid for the acquisitions. Jordan could not be reached by press time.
IMM designs and manufactures underground longwall coal mining equipment in China. In addition to original equipment, IMM provides aftermarket parts and services through a broad network of service and warehouse locations. The company recorded revenues of approximately $299 million in 2010 and adjusted EBITDA of $90 million.