Middle-market buyout shop The Jordan Company has exited its investment in International Mining Machinery Ltd., selling the company to publicly traded Joy Global Inc. Joy Global paid roughly $584.6 million for a 41% stake. International Mining Machinery is a designer and manufacturer of underground long wall coal mining equipment in China.
The Jordan Company, L.P., a leading middle-market private equity firm, today announced the completion of its sale of International Mining Machinery Ltd. (HKSE:1683) (”IMM”) to Joy Global Inc. (NASDAQ:JOYG), a worldwide leader in high productivity mining solutions. The transaction received approval in December from the Anti- monopoly Bureau of the Ministry of Commerce of the People’s Republic of China.
In July 2011, the Jordan Company announced that it had entered into an Share Purchase Agreement to sell 534.8 million shares of IMM, representing approximately 41% of the company’s issued share capital, to Joy Global Inc. Pursuant to the Agreement, Joy Global purchased the shares at a price of HK$8.50 per share, or approximately $584.6 million at current exchange rates.
An affiliate of The Jordan Company, L.P. initially invested in IMM in 2006, and on February 10, 2010, IMM priced a 520 million share public stock offering at HK$4.88 per share.
“Since our IMM acquisition, we’ve completed seven add-on acquisitions and joint ventures that have expanded the company’s product and service offerings and have seen IMM emerge as a comprehensive market leader in China,” said Thomas H. Quinn, Managing Principal of The Jordan Company. “From a state owned enterprise to a growing public company, we have enjoyed working with the management team, both operationally and financially, to position IMM for long-term success.”
Headquartered in Hong Kong with offices in Beijing and several other mainland China cities, IMM is a former state-owned enterprise that is a leader in the design and manufacture of underground long wall coal mining equipment in China. The company offers road header products, long wall shearer products, armored-face conveyors and related products, and electrical controls, as well as a range of aftermarket services, including onsite service repairs, overhauls, and a supply of spare parts through a network of service centers and parts depots.
Mayer Brown and Kirkland & Ellis acted as legal advisors to The Jordan Company. ###
About The Jordan Company
The Jordan Company (www.thejordancompany.com), founded in 1982, is a leading middle- market private equity firm with over $5 billion of assets under management and a successful track record of investing in and growing businesses across a wide range of industries. The firm’s partners have been investing together for more than two decades, establishing The Jordan Company as one of the most experienced and stable investment teams in private equity. The investment team is supported by the firm’s Operations Management Group, which initiates and supports operational improvements in portfolio companies. The firm generates deal flow through a well-developed network of sourcing relationships. Headquartered in New York, The Jordan Company also has offices in Chicago and Shanghai.
About International Mining Machinery Ltd.
International Mining Machinery Ltd. (www.immchina.com) engages in the design and manufacture of underground long wall coal mining equipment in China. The company offers road header products, long wall shearer products, armored-face conveyors and related products, and electric controls, as well as a range of aftermarket services, including onsite service repairs, overhauls, and a supply of spare parts through a network of service centers and parts depots. It sells its products through independent distributors and sales agents. The company is headquartered in Hong Kong with offices in Beijing and several other mainland China cities.