Wajax Corporation

Wajax Corporation

May 17, 2011 08:52 ET

Wajax Comments on Sale of LeTourneau Technologies

TORONTO, ONTARIO--(Marketwire - May 17, 2011) -Wajax Corporation (TSX:WJX)

Rowan Companies, Inc. of Houston, Texas announced yesterday that it had agreed to sell its 100% ownership interest in LeTourneau Technologies, Inc. ("LeTourneau") to Milwaukee-based Joy Global Inc. ("Joy"). Wajax understands that the sale transaction is subject to regulatory approval which the parties expect will be received within 60 days.

Wajax is the exclusive distributor of LeTourneau products in Canada, including front-end wheel loaders used in the mining segment of the economy. 2010 Wajax revenue from the sale and service of LeTourneau products was approximately $40 million and contributed approximately $10 million to earnings before interest and taxes.

Joy has announced its intention to look for ways to integrate LeTourneau field facilities and distribution activities with its P&H mining equipment operations.

It is unknown at this time whether Wajax's current distribution arrangements may be affected by the ownership change in LeTourneau. Wajax will continue to monitor developments.

Wajax is a diversified corporation that has three core distribution businesses engaged in the sale and after-sales parts and service support of mobile equipment, industrial components and power systems, through a network of 118 branches across Canada. Its customer base spans natural resources, construction, transportation, manufacturing, industrial processing and utilities.

Forward-Looking Statements

This news release contains forward-looking statements. These statements relate to future events or future performance and reflect management's current expectations and assumptions.

Although we believe that the expectations represented in such forward-looking statements are reasonable, there is no assurance that such expectations will prove to be correct. Undue reliance should not be placed on forward-looking statements, as a number of factors could cause the actual results to differ materially from the expectations expressed in the forward-looking statements. Information on risk factors is included in the Management's Discussion and Analysis for the year ended December 31, 2010 under the heading "Risk and Uncertainties", and in other reports filed by Wajax Income Fund and the Corporation with Canadian securities regulators and available at www.sedar.com.

Contact Information

  • Wajax Corporation
    Neil Manning
    President and Chief Executive Officer
    (905) 212-3300

    Wajax Corporation
    John Hamilton
    Chief Financial Officer
    (905) 212-3300