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May 16, 2011 5:11 PM

Joy Global to Pay $1.1 Billion for Rowan's Manufacturing Arm

Posted by Tom Huddleston Jr.

Mining equipment maker Joy Global Inc. agreed to pay $1.1 billion to buy Houston-based oil and gas driller Rowan Companies, Inc.'s LeTourneau Technologies manufacturing arm, the companies announced on Monday.

Latham & Watkins is representing Rowan and Covington & Burling is advising Joy Global in a deal expected to close within 60 days.

LeTourneau designs and manufactures mining and drilling products such as large wheel loaders for surface mining and offshore rigs. The unit's mining and drilling businesses had combined 2010 revenue of $815 million. Joy Global will fold the acquisition into its P&H Mining Equipment business and said it expects to cut $40 million in annual costs by 2013.

New York corporate partner Stephen Infante was coleader of Covington's team with Washington corporate partner Andrew Jack. The firm's lawyers also included tax partner Rob Heller; antitrust partners Deborah Garza and Jim O'Connell; benefits partner Robert Newman; environmental partner Corinne Goldstein; FCPA partner Don Ridings; finance partner Peter Zern; and insurance partner Seth Tucker.

Jack advised Joy Global in the past, leading the way for Covington on Joy Global's $270 million acquisition of NES Investment, Co.--parent company to conveyer systems company Continental Global Inc.--in 2008.

Houston-based Latham corporate partners Bill Finnegan and Sean Wheeler served as lead partners for that firm. Tax partner Laurence Stein and compensation partner David Della Rocca are also working on the deal, while partner Michael Egge is advising on antitrust issues. Latham also worked on Rowan's $900 million acquisition of Skeie Drilling and Production ASA last summer.

Joy Global's general counsel is Sean Major, while John Buvens serves as executive vice president in charge of Rowan's legal department.

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