Mining equipment manufacturer Joy Global Inc. is selling the drilling products business of its LeTourneau Technologies Inc. to Cameron International for $375 million. Cameron produces flow-control equipment and systems for oil-and-gas and process industries worldwide.
Joy Global said the sale will allow it to concentrate on manufacturing surface and underground mining equipment, its primary line of business.
Joy paid $1.1 billion to acquire LeTourneau earlier this year. The business it is selling designs and manufactures offshore jack-up drilling rigs and primary components for the rigs. It also produces drilling equipment for large land and offshore rigs. Cameron will acquire operations in Houston and Vicksburg, Miss., and Joy Global will retain a plant in Longview, Texas, where LeTourneau manufactures large-capacity wheel loaders for the surface mining market.
"The addition of LeTourneau's portfolio of drilling equipment and rig components adds to our existing products offering and enhances the growth opportunities for our drilling systems platform," stated Cameron chairman and CEO Jack Moore. "We welcome the LeTourneau team to the Cameron family and look forward to providing our customers and theirs with a greater suite of products and services."
The sale will be completed by year’s end. Moore said the acquisition would be accretive to Cameron's 2012 earnings.