Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
TORONTO, ONTARIO–(Marketwire – Oct. 17, 2011) – Wajax Corporation (TSX:WJX) today announced it has reached an agreement with LeTourneau Technologies, Inc. (“LeTourneau”) providing for the dealer agreement relating to Wajax’s distribution of LeTourneau mining equipment and parts products in Canada to be discontinued effective April 27, 2012.
On May 16, 2011, Joy Global Inc. (“Joy”) announced that it had entered into a definitive agreement to acquire LeTourneau. Joy indicated at the time that its intention was to look for ways to integrate LeTourneau field facilities and distribution activities with its P&H mining equipment operations. In its May 17, 2011 news release commenting on the sale, Wajax advised of the possible impact the transaction might have on its distribution arrangements and noted that sales and service of LeTourneau products in 2010 had generated approximately $40 million of revenue and contributed approximately $10 million to its earnings before interest and taxes. Exit costs or write downs, if any, are expected to be minimal. Joy Global announced the closing of its acquisition of LeTourneau on June 22, 2011.
Wajax Corporation is a leading Canadian distributor and service support provider of equipment, industrial components and power systems. Reflecting a diversified exposure to the Canadian economy, its three distinct core businesses operate through a network of 117 branches across Canada. Its customer base spans natural resources, construction, transportation, manufacturing, industrial processing and utilities.
