LONDON, UK / ACCESSWIRE / December 08, 2017 / Active-Investors issued a free report on Hyster-Yale Materials Handling, Inc. (NYSE: HY) ("Hyster-Yale"), which is readily accessible upon registration at www.active-investors.com/registration-sg/?symbol=HY as the Company's latest news hit the wire. On December 06, 2017, the Company declared that it has signed an agreement to acquire 75% of the outstanding shares and a controlling interest in Zhejiang Maximal Forklift Co. Ltd ("Zhejiang Maximal") from KNSN Pipe and Pile Co. Ltd for $90 million. Sign up now for our free research reports at:
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The new Company formed will be named Hyster-Yale Maximal Materials Handling Co. Ltd ("HY Maximal"). The remaining 25% share will be owned by the current senior management of Zhejiang Maximal, through Y-C Hong Kong Holding Co. Ltd.
The transaction was funded using Hyster-Yale's cash on hand. Following the acquisition, HY Maximal will continue to operate as a separate entity within Hyster-Yale's JAPIC segment, with its own management team and Board of Directors.
The transaction, expected to close during the first half of 2018, is subject to customary closing conditions and required regulatory approvals.
The proposed acquisition is expected to be dilutive to Hyster-Yale's earnings in 2018 by $5 million to $10 million pre-tax due to additional investments in expenses and capital needed to implement the Company's integration plan. It is expected to move towards being accretive in the medium term under conservative market share and synergy objectives.
In the new Company, Hyster-Yale will hold six seats on the Board of Directors while Y-C Hong Kong Holding Co. Ltd will hold three seats. Hyster-Yale will appoint the Chairman of HY Maximal. Following the transaction, Lu JinHong, Zhejiang Maximal's current Chairman, will become HY Maximal's Chief Executive Officer (CEO).
Acquisition will Further Expand Hyster-Yale's Global Share in China and Global Utility and Standard Market Segments
The combination will enable Hyster-Yale to meet customers' needs more effectively by broadening its product offerings. Zhejiang Maximal's historical strength is in China, the world's largest market and where Hyster-Yale wants to expand. This acquisition will increase the Company's participation in the global lift truck market. It will allow it to further expand its global share and earnings in both China and global utility and standard market segments as a result of the addition of Zhejiang Maximal's existing portfolio of established Chinese brands, a broad competitive utility and standard product line-up, and a local and global distribution network.
The transaction will also enable Hyster-Yale to establish a larger production and sourcing foundation in China, leveraging Zhejiang Maximal's low-cost manufacturing operation, utilizing its excess capacity by bringing the design and production of Hyster-Yale global utility product in-house. Hyster-Yale can leverage its expertise in manufacturing technology, product development, sales processes, and distribution to realize synergies and additional capabilities by building on Zhejiang Maximal's existing local strengths, that will enhance the former's ability to deliver a full range of economic solutions to meet global customer needs and further achieve its strategic initiatives, including ‘Focusing on Increased Success in Asia', ‘Enhancing Understanding of Customer Needs', and ‘Driving for Lowest Cost of Ownership', as well as accelerate profitable share growth to achieve its financial objectives.
About Hyster-Yale Materials Handling, Inc.
Founded in 2012, Hyster-Yale offers a broad array of solutions to meet the specific materials handling needs of customers' applications. The Company's wholly-owned operating subsidiary, Hyster-Yale Group, Inc., designs, engineers, manufactures, sells, and services a comprehensive line of lift trucks and aftermarket parts marketed globally, primarily under the Hyster® and Yale® brand names. Hyster-Yale is headquartered in Cleveland, Ohio.
Stock Performance Snapshot
December 07, 2017 - At Thursday's closing bell, Hyster-Yale's stock slightly fell 0.50%, ending the trading session at $85.19.
Volume traded for the day: 38.22 thousand shares.
Stock performance in the last month – up 5.20%; previous three-month period – up 23.36%; past twelve-month period – up 26.51%; and year-to-date - up 33.59%
After yesterday's close, Hyster-Yale's market cap was at $1.41 billion.
Price to Earnings (P/E) ratio was at 22.23.
The stock has a dividend yield of 1.42%.
The stock is part of the Consumer Goods sector, categorized under the Trucks & Other Vehicles industry.
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