Japanese machinery maker Toyota Industries Corporation agreed to buy Cascade Corporation, a maker of parts for the lift trucks industry, for $759 million.
Toyota has offered $65 per share, a premium of 18 percent to Cascade’s closing price on Friday. Shares of Cascade rose nearly 18 percent, to $64.93, in morning trading on Monday.
Toyota Industries is the latest Japanese company to pursue growth by looking beyond its home shores. The company is different from Toyota Motor Corporation, the carmaker that was spun off nearly 80 years ago. Toyota Industries is one of 13 core companies of the Toyota Group and is Toyota Motor’s largest shareholder, holding 5.55 percent of its shares.
The move is part of an effort to expand globally. Cascade is a prominent maker of parts for lift trucks and construction vehicles. The American company, based in Fairview, Oregon, earned $63 million in the year ended January 31, on revenue of $535.8 million.
“We’ve long known Cascade as a reliable and world-class supplier to our materials handling business and we look forward to better meeting our customers’ logistical needs by broadening our lift truck business,” said Tetsuro Toyoda, the president of Toyota Industries.
Cascade will become a subsidiary of Toyota Industries and will continue to be run by its chief executive, Robert C. Warren Jr.