Toyota Industries to buy Cascade for $759 million
(Reuters) - Japanese machinery maker Toyota Industries Corp (6201.T) will buy U.S.-based Cascade Corp CASC.N, a maker of parts for lift trucks, for $65 per share in a deal that values the company at $759 million including options and other rights.
The deal, which values the Oregon-based company's outstanding common stock at $728 million, sent Cascade shares up 18 percent to $64.95 on the New York Stock Exchange.
The U.S. company, which makes load engagement devices and related replacement parts for lift truck and construction industries, has long been a supplier to Toyota Industries' materials handling business.
It had revenue of $535.8 million for the year ended January 2012.
Toyota Industries, a maker of lift trucks and textile and automotive machinery, is a major supplier to Toyota Motor Corp (7203.T) and is part of the same group.
Cascade Chief Executive Robert Warren will continue to head the acquired business, which will remain based in Fairview, Oregon, Toyota Industries said.
The deal is expected to close by the end of 2012, it added.
Nomura Securities acted as the financial adviser to Toyota Industries, while Merrill Lynch advised Cascade.
(Reporting by Mridhula Raghavan in Bangalore; Editing by Sriraj Kalluvila and Sreejiraj Eluvangal)