NEW YORK, June 14, 2006 (PRIMEZONE) -- 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 U.S. 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 companies that provide clean coal technologies and pollution control equipment for coal fired power plants.
The Jordan Company, L.P. is a New York-based investment firm with approximately $2.5 billion of capital under management that has been sponsoring and investing in middle market leveraged buyout transactions for more 20 than years. Jordan currently has a portfolio of investments in over 20 businesses representing more than $4.0 billion in annual revenue. Jordan and its affiliates have made 12 investments in China since 1995; including acquisitions, joint ventures and wholly-owned Greenfield operations.