Joy Global buying Rowan's LeTourneau business

By the Associated Press | May 16, 2011 | 6:44 AM EDT

MILWAUKEE (AP) — Mining equipment maker Joy Global Inc. said Monday it will buy mining and oil and gas drilling equipment maker LeTourneau Technologies Inc. from Rowan Companies Inc. for $1.1 billion in cash.

LeTourneau designs, builds and supports equipment for the mining and oil and gas drilling industries and makes earthmoving equipment. Joy Global said its board and the Rowan board have approved the deal, and pending regulatory approval, it expects the sale to close within 60 days. Joy Global said the purchase will add to its profit this year excluding transaction costs and an accounting charge.

LeTourneau reported $815 million in revenue in 2010, with $556 million from its drilling products business and $259 million in mining revenue.

Joy Global, which had $3.5 billion in revenue in its last fiscal year, said it expects the company's drilling business to benefit from growth in building in offshore and land oil rigs. Joy Global added that its P&H Mining business is a dealer for LeTourneau products in some areas.