Joy Global announced that it entered into a definitive agreement to purchase certain assets of Mining Technologies International for $51M Canadian dollars. MTI is a Canadian manufacturer of underground hard rock mining equipment serving the North American markets and a world leading supplier of raise bore drilling consumables. The company is acquiring substantially all of the assets associated with MTI’s hard rock drilling, loaders, dump trucks, shaft sinking, and raise bore product lines.
MTI’s fiscal 2013 revenues associated with these product lines were approximately $90M U.S. dollars. Excluding the impact of transaction costs and excess purchase accounting charges, the company expects the transaction to be accretive to earnings in 2015. Completion of the transaction is subject to customary closing conditions and is expected to occur within 90 days.
Analysts have a consensus price target of $60 on Joy Global Inc.(NYSE:JOY) which indicates a 3% downside. The consensus rating of the stock is a HOLD with a score of 2.00. There are currently 8 Hold Ratings, 2 Buy ratings and 2 Sell ratings on the stock.
A recent analyst action consisted of Zacks reiterating their Neutral rating on the stock. Zacks has a $61 price target on JOY.
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