Further co-operation and major asset exchange between JENNMAR and DSI

Frank Calandra, Inc (JENNMAR) has announced that the company has entered into five separate agreements with DYWIDAG Systems International (DSI), relating to exchanges of assets in the US and Latin America. JENNMAR is acquiring DSI’s US Mining Division to strengthen its domestic capabilities, while DSI is acquiring JENNMAR Latin America (Mexico, Chile, and Peru); as well as some JENNMAR assets in Europe in Australia. In addition, the two companies are establishing a joint venture in China.

JENNMAR will acquire 100% of DSI Mining’s manufacturing assets in the US and DSI’s entire mining division will be integrated into JENNMAR USA. Closing of the transaction is expected within 30 days. JENNMAR’s Executive Vice President, Tony Calandra commented, “DSI’s strong presence in western US hard rock mining will further strengthen JENNMAR’s position in this segment of the market. On the other side, its activities in coal mining will complement our existing strong footprint and close some gaps in our offering.”

As stated, DSI will on its side be acquiring JENNMAR Latin America (Mexico, Chile, and Peru). Closing of this transaction is also expected within 30 days. DSI will also be acquiring JENNMAR’s companies in Europe (JENNMAR Spain, JENNMAR Multitex in the Czech Republic, JENNMAR Merol in Poland). Closing of this transaction is expected within 30 days. Finally, DSI will be acquiring JENNMAR Australia. The date of that close is subject to review by the Australian Competition Commission.

Patrik Nolåker, Group CEO of DSI, commented on the transaction; “Soft commodity prices and supply/demand imbalances represent important challenges to our customers in mining. Through this acquisition DSI will combine the strengths of two well established market players, which will allow it to provide its customers a superior offering, both from an efficiency and a product & service portfolio perspective.”

FCI will also be selling a 50% stake in its Chinese subsidiary JENNMAR Asia (Jining), creating another ROCBOLT Technologies joint venture between JENNMAR and DSI. This latest combination will do business as ROCBOLT Technologies (China) and joins two other successful joint ventures between JENNMAR and DSI, ROCBOLT Technologies (South Africa) and ROCBOLT Resins (Australia). Calandra and Nolåker both explain that they are, “enthusiastic about the establishment of a third ROCBOLT joint venture in China to complement the two established ventures in Australia and South Africa.”