Hyster-Yale Materials Handling entered into a definitive agreement to acquire, through an indirect wholly-owned subsidiary, 75% of the outstanding shares of, and a controlling interest in, Zhejiang Maximal Forklift Company from KNSN Pipe and Pile Company for an aggregate purchase price of $90 million, funded using Hyster-Yale’s cash on hand.
The remaining 25% share of the new company, which will be named Hyster-Yale Maximal Materials Handling Co., will be owned by current Zhejiang Maximal Forklift senior management through Y-C Hong Kong Holding Company.
Maximal, a privately-held, Chinese OEM for utility and standard lift trucks and specialized material handling equipment founded in 2006, is involved in the design, manufacture, service and distribution of Class 1 electric and Class 5 internal combustion engine counterbalance utility and standard platforms, and Class 2 and Class 3 electric warehouse products in both the local China and global markets under the Maximal and SAMUK brands. Maximal also designs and produces specialized products in the Port Equipment and Rough Terrain forklift segments. Maximal has nearly 600 employees, and its 133,000 square meter facility in the Lushan Industry Area near Hangzhou, approximately 200 miles southwest of Shanghai, has a current production capacity of 30,000 units.
The closing of the transaction, which is expected to take place during the first half of 2018, is subject to customary closing conditions and required regulatory approvals.
Colin Wilson, president and chief executive officer of Hyster-Yale Group, said, “Maximal is well-known as a reliable manufacturer of global utility and standard forklift trucks and specialized material handling equipment. We look forward to meeting our customers’ needs more effectively by broadening our product offerings as a result of this transaction. Maximal’s historical strength is in China, the world’s largest market and where we want to expand. We also believe this acquisition will increase our participation in the global lift truck market and, therefore, allow us to further expand our global share and earnings in both the China and global utility and standard market segments as a result of the addition of Maximal’s existing portfolio of established Chinese brands, a broad competitive utility and standard product line-up and a local and global distribution network.”
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