(By Balachander) Cascade Corp. (NYSE: CASC) surged 18 percent in Monday trading after the company agreed to be acquired by Japan's Toyota Industries Corp. (TICO) for $65 per share in cash, representing a premium of 18 percent to the stock previous closing price.
Fairview, Oregon-based Cascade is engaged in the manufacture of materials handling products used primarily on lift trucks and TICO expects the acquisition to expand its lift truck business.
The deal, which is valued at $759 million, will create a leading global materials handling business with a wider spectrum of products and a valuable platform for growth, the companies said.
Under the terms of the agreement, TICO will launch a tender offer for shares of Cascade at the price of $65 no later than November 5, 2012.
Toyota is a transportation equipment company engaged in the manufacture and sale of automobiles, materials handling equipment and textile machinery, as well as in the logistics business in Japan and internationally.
The deal is expected to be completed by the end of calendar year 2012.
For the second quarter ended July 31, Cascade earned $1.11 a share on sales of $136 million.
Robert C. Warren, Jr. and Warren Holdings, LLC, a family-managed limited liability company, have agreed with TICO to support the transaction and to tender their shares in the tender offer that cover roughly 14 percent of Cascade's outstanding shares.
BofA Merrill Lynch is serving as exclusive financial advisor to Cascade and Nomura Securities is serving as exclusive financial advisor to TICO.
CASC shares rose $9.82 to trade at $64.90 on Monday. Over the past year, the stock has been trading in the 52-week range of $37.30 to $65.18.