* Japanese company paying $65 for each Cascade share
* Cascade shares rise nearly 18 pct, just under offer price
Oct 22 Japanese machinery maker Toyota
Industries Corp has struck a $759 million deal to buy
U.S.-based lift truck parts maker Cascade Corp, adding
to its key material handling business and broadening its global
Toyota Industries, a maker of lift trucks and textile and
automotive machinery, is paying $65 for each Cascade share, an
18 percent premium to the stock's Friday closing price.
The deal, which values the Oregon-based company at $759
million including options and other rights, sent Cascade shares
up nearly 18 percent to $64.95 on the New York Stock Exchange,
just below Toyota Industries' offer.
The U.S. company, which makes load engagement devices and
related replacement parts for the lift truck and construction
equipment industries, has long been a supplier to Toyota
Industries' materials handling business. The Japanese company is
a major supplier to Toyota Motor Corp and is part of
the same group.
Cascade, which had revenue of $535.8 million for the year
ended January 2012, had been exploring a sale of the company
since early this year and talked to potential buyers including
Toyota Industries, which prevailed the auction, according to a
person familiar with the matter.
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 Bank of America Merrill Lynch advised Cascade.
The deal is among a series of cross-border transactions
pursued by Japanese buyers this year as companies look to take
advantage of the strong yen currency and seek new growth outside
their stagnant home markets.