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Joy Global Inc. (JOY - Analyst Report) inked a firm agreement to buy certain assets of Canada-based hard rock mining equipment manufacturer, Mining Technologies International ("MTI"). Joy Global’s share price edged up 1.25% to close at $60.90 on Apr 14, 2014, following the news.

The transaction is priced at $51.0 million Canadian dollars (US$46.4 million) and is subject to customary closing conditions. The MTI assets that Joy Global will acquire had fetched revenues of US$90 million in fiscal 2013.

The company anticipates the acquisition to be earnings accretive in 2015, excluding the impact of transaction costs and excess purchase accounting charges.

Per the agreement, Joy Global will purchase a wide range of assets connected with MTI’s hard rock drilling, loaders, dump trucks, shaft sinking and raise bore products.

The purchase is expected to boost Joy Global’s underground mining product lines and will tap the growing hard rock mining market including nickel, potash, palladium, platinum, gold and copper.

The deal seems to be well timed as the global platinum market is expected to perform well owing to rising automobile demand in the U.S. and Europe. Platinum has important industrial applications, particularly auto-catalysts that cut pollution from vehicles are big users of platinum group of metals. More good news awaits Joy Global as overseas gold demand in 2014 is anticipated to increase driven by high consumption from countries like China.

However, a supply glut in the global copper commodity market will act as headwind as South American companies are expected to bring new mines on stream.

Besides Joy Global, which currently carries a Zacks Rank #3 (Hold), other leading operators in the mining equipment industry include Caterpillar Inc. (CAT - Analyst Report) and The Manitowoc Co., Inc. (MTW - Analyst Report).

Zacks Ranked #1 (Strong Buy) Komatsu Ltd. (KMTUY) could prove to be a stiff competitor for Joy Global.

Read the Full Research Report on JOY
Read the Full Research Report on CAT
Read the Full Research Report on MTW
Read the Full Research Report on KMTUY


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