Bucyrus International said Monday it signed a definitive agreement to acquire Germany-based DBT GmbH, a subsidiary of RAG Coal International for $710 million.
The transaction is expected to be completed at the end of the first quarter of 2007 and is subject to customary closing conditions and regulatory approvals.Bucyrus designs and manufactures walking draglines, electric rope mining shovels and rotary blasthole drills used by the surface mining industry. DBT is a supplier of complete system solutions for underground coal mining. The company also manufactures roof support systems, armored face conveyers, plows, shearers and continuous miners used primarily by customers who mine coal. DBT has eight facilities around the world with approximately 3,200 employees. DBT generates approximately $1 billion in annual revenue.
Bucyrus will acquire DBT in a two-stage transaction. Bucyrus and the Hamburg Trust, a private German investor, have formed a holding company which will acquire DBT.
Bucyrus has received a financing commitment from Lehman Brothers to support the transaction's cash purchase price as well as a permanent financing structure that will include a combination of debt and equity securities consistent with achieving a conservative capital structure.