Bucyrus to acquire DBT

SURFACE mining equipment manufacturer Bucyrus International revealed overnight it will acquire DBT GmbH for $US710 million in cash plus shares with a market value of $21 million.
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Oaky Creek equipment on the water.

Staff Reporter

DBT senior vice-president of finance and operations Uli Noll told International Longwall News the company would not comment on the subject today.

Bucyrus president and CEO Tim Sullivan said when the two companies combine they will have a consolidated installed base of equipment of over $20 billion.

“Both companies share a similar culture and history with a focus on technology, delivering high quality products, valued employee relationships and providing first-class service to our customers,” Sullivan said.

“We are very bullish on the long-term fundamentals for coal and this combination will allow us to address 100 percent of the coal mined on a global basis."

Sullivan said the Bucyrus/DBT combination will provide significant geographic, product and end market diversification for Bucyrus.

“In addition to increased scale, DBT will greatly enhance Bucyrus' market in China as well as in the markets of other developing countries such as Russia and India,” he said.

The transaction is expected to be completed at the end of the first quarter of 2007.

Bucyrus is a global leader in the design and manufacture of walking draglines, electric rope mining shovels and rotary blasthole drills used by the world's surface mining industry.

DBT manufactures equipment including roof support systems, armoured face conveyers, ploughs, shearers and continuous miners used primarily by customers who mine coal.

DBT has eight facilities around the world with approximately 3200 employees and generates approximately $1 billion in annual revenue.

Further details of the deal will be revealed in a Bucyrus teleconference on December 18 from the US, 3pm ET.

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