(Reuters) - Japanese machinery maker Toyota Industries Corp (6201.T) has struck a $759 million deal to buy U.S.-based lift truck parts maker Cascade Corp CASC.N, adding to its key material handling business and broadening its global customer base.
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 (7203.T) 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.
Reporting by Mridhula Raghavan in Bangalore and Soyoung Kim in New York; Editing by Sriraj Kalluvila, Sreejiraj Eluvangal and Tim Dobbyn