Joy Manufacturing Co. shareholders approved on Wednesday a $620 million propos
PITTSBURGH (AP) _ Joy Manufacturing Co. shareholders approved on Wednesday a $620 million proposal to take the company private in a leveraged buyout, the company said.
Each Joy common share will be exchanged for 1.75 shares of exchangeable, redeemable preferred stock with a value of $20 per share in the private company, called Joy Technologies Inc.
Each preferred share in Joy Technologies will have an annual dividend rate of $3.25.
The vote is the final step in Joy’s move to go private by a group of investors asociated with the investment firm Adler & Shaykin.
In a leveraged buyout, a company is acquired largely with borrowed funds thar are repaid from the target company’s profits or sale of assets.
Joy Manufacturing, based in Pittsburgh, is a producer of capital equipment and associated services for coal mining, air pollution control, air compression, ore processing and general industrial applications.
Joy Technologies also announced the acquisition of Ecolaire Inc., a leading designer and manufacturer of capital equipment serving the electric power generation, incineration and industrial process industries.