Acquire Mining Ops From Rowan BY Joy Global

Joy Global Inc (JOYG) do a definitive agreement to buy mining equipment maker LeTourneau Technologies Inc. of Rowan Cos (RDC) for $ 1.1 billion, a deal which allows to enter the market of mining and oil and gas.

S Caterpillar Inc. (CAT) $ 7600000000 deal for Bucyrus International Inc. (BUCY) late last year left the Pure Joy Global as playing only rest in the market-the surface and underground-mining equipment. The company has seen orders improvement on last quarter due to high prices of commodities such as copper and coal mine operator triggers to revive the project expansion and plans for the location of new mines stored at the end of 2008 when demand and prices collapsed.

Covenant to LeTourneau provides access to two segments of the business and its products-mining drilling. Mining products manufacturing business big wheel loader for surface mining, while product design business offshore drilling jackup drilling rig and its components to the rig.

LeTourneau recorded revenues of $ 815.000.000 in calendar 2010 and profit adjusted for $ 105 million. Joy Global expects the deal to add revenue on fiscal year 2011 and see the synergies of approximately $ 40 million in 2013.

Rowan, meanwhile, has reaffirmed its plans to sell or spin off activities LeTourneau manufacturing when the requirement to be good. Rowan first quarter profit down 50% due in part to the delivery is delayed on a one time cost LeTourneau in the business of offshore drilling.

Joy Global closed Friday at $ 87,48, while Rowan was at $ 38,04. Both active premarket. They were up 0.8% and 9%, respectively, throughout this year.