General Electric (NYSE: GE) announced it is pursuing acquisitions of two underground mining equipment manufacturers in support of the global expansion of its mining business.
In a press release, GE said it has offered nearly $695 million for Australia-based Industrea Limited (ASX: IDL), a provider of safety and productivity-enhancing mining equipment and services.
GE also signed a binding Letter of Intent (LOI) to acquire Fairchild International, an independently owned and operated underground mining equipment manufacturer located in Glen Lyn, Virginia.
The combination of the two entities expands GE’s product offering to address approximately 35% of the underground mining value chain. Industrea Ltd. and Fairchild International are well positioned in dynamic growth regions for mining, including Australia, China (Industrea), and the U.S. (Fairchild).
GE will enable these regionally focused enterprises to reach a global customer base with enhanced products based on GE’s clean propulsion systems, energy storage offering, and world-class system integration capabilities. Both Industrea Ltd. and Fairchild International will benefit from GE’s lean manufacturing and effective global supply chain management.
Both companies will become part of GE Transportation’s global mining business, which utilizes the people, technologies, and products from across GE to help its customers solve their toughest mining challenges. GE helps mines work better by providing innovative solutions in critical areas such as power, water and productivity.