Toyota Industries Corp to buy Cascade for $759mil
Parts and assembly firm Toyota Industries Corp (TICO) have agreed to buy forklift component manufacturer Cascade Corp, for $759 million in cash.
In a bid to expand in the materials handling business, Toyota has purchased 100 percent of Cascade, which is the world’s biggest supplier of materials-handling attachments and replacement parts for lift trucks.
In an online statement released yesterday, TICO announced it has ‘entered into a definitive agreement under which TICO will acquire 100 percent of the shares of Cascade for $65 per share in cash in a transaction valued at $759 million pursuant to a tender offer.’
The purchase price represents a 23 percent premium over Cascade's volume-weighted average share price for the 60 days ending October 19, 2012. The transaction has been unanimously approved by the Boards of Directors of both TICO and Cascade.
Tetsuro Toyoda, TICO President and Representative Director, said: “Cascade Corporation has a strong reputation for providing customers with the latest technology in materials handling attachments for lift trucks and is widely considered to be the innovative leader with high-quality, customisable products. We've long known Cascade as a reliable and world-class supplier to our materials handling business, and we look forward to better meeting our customers' logistical needs by broadening our lift truck business.”
The deal is expected to be completed by the end of 2012, it is anticipated that TICO will commence a tender offer for all of the outstanding shares of Cascade at the price of $65 no later than November 5, 2012.