Komatsu Mining in process of selling Joy Global mining conveyor & Goodman-Hewitt idler businesses to private equity company Stellex

Posted by Paul Moore on 30th March 2021

Komatsu Mining announced on March 11 that “recognising the opportunity for its US and Australian-based conveying businesses to develop new capabilities and diversify, Komatsu has signed an agreement to sell those business units to Stellex Capital, an investment company focused on middle-market companies with improvement and growth potential.” The businesses were part of Joy Global Inc which Komatsu acquired in April 2017.

The proposed sale will include the stock of Joy Global Conveyors Inc and the assets of Komatsu’s Australian-based conveying business, which includes assets and facilities in Winfield, Alabama, USA and Somersby, New South Wales, Australia and a transfer of employees. It covers most of the Continental Conveyor business that was founded in 1963 and which Joy Global acquired in 2008 when it bought Continental Global. It includes belt conveyor systems and components for mining applications, including general underground, overland, tunnel, curved, heavy duty, open pit, High Angle Conveyor (HAC), and steeply inclined conveyors. It also includes the Goodman-Hewitt brand that includes idlers and pulleys.

Together, they will form a new standalone organisation owned by Stellex Capital, to be called Continental Global Material Handling LLC. The new entity plans to leverage the legacy equipment brands Continental and Goodman-Hewitt. The official close of the sale was expected to occur by early April 2021.

“This is a great opportunity for our conveying teams in the US and Australia to continue growing as part of a new organisation driven by Stellex Capital,” said Peter Salditt, President of underground and hard rock mining for Komatsu Mining Corp. “Stellex has a history of investing in businesses with similar profiles and has a proven track record of success.” This proposed sale does not include Komatsu’s UK conveyor business, which has a very customised business model focusing on construction and civil tunnelling, that differs from the Stellex portfolio. Komatsu says it will continue to position this area of its business for future opportunities.