 |
Download Printable PDF | Back |
The Jordan Company's Resolute Fund Acquires
Jixi and Jiamusi Coal Mining Machinery Companies (China)
New York, NY: June 13, 2006 - The Jordan Company, L.P., ("Jordan") today announced that International Mining
Machinery Limited, a company formed by Jordan and Beijing based co-investors Emory Williams and John Lee, has
completed the acquisitions of 100% of Jixi Coal Mining Machinery Co., Ltd. ("Jixi") and 100% of Jiamusi Coal Mining
Machinery Co., Ltd. ("Jiamusi"). Jixi and Jiamusi were acquired from the Heilongjiang Coal Mining Machinery Group
Co., Ltd., a State Owned Enterprise ("SOE") owned by the Heilongjiang State-Owned Assets Supervision and
Administration Commission ("SASAC").
Jordan is the first US Company to complete an acquisition of 100% of an SOE in Heilongjiang Province through
restructuring as part of China's Northeast Region Revitalization Program. The acquisitions were funded by equity
capital provided by The Resolute Fund, L.P., a private equity fund managed by Jordan.
Jixi and Jiamusi are the leading suppliers of shearers, roadheaders and other coal mining equipment in China. The
Chinese coal industry is expanding rapidly as the Chinese economy continues to expand. Growth is driven primarily
by China's increasing demand for electricity, of which approximately 70% is supplied from coal fired power plants.
The coal mining equipment industry is growing faster than the coal industry in China due to the increased need for
automation and mechanization to improve mine safety and productivity. In 2005, Jixi and Jiamusi had combined revenues
of $105.4 million.
This transaction will allow Jordan to partner with Williams, Lee and the Jixi and Jiamusi management teams to
expand through the development of an aggressive export program as well as strategic acquisitions of companies
that manufacture related safe and efficient coal mining equipment solutions. In addition, Jordan also plans to leverage
its industry knowledge and relationships to pursue investment opportunities in Chinese