Broadly diversified Barloworld Ltd will withdraw from the forklift business in the United States after 33 years.
The firm's Barloworld Handling LLC unit in Charlotte represents the Hyster forklift brand in the south-east US and, for those Hyster-related assets, has executed letters of interest with the Briggs International Inc unit of Sammons Enterprises Inc and the LiftOne division of Carolina Tractor & Equipment Co.
The Barloworld Handling US operations involve about 800 employees and 30 forklift branches.
"Briggs Equipment and LiftOne would each acquire a portion of Barloworld's assets and represent Hyster materials handling equipment in a portion of Barloworld's territory," says John Blackbeard, corporate Barloworld Handling chief executive officer. "A due diligence and information gathering process will begin shortly when the potential new owners will carry out inspections of Barloworld Handling's physical and commercial assets in the USA such as property and equipment, supplier and customer lists and employee details. This process is expected to last approximately one month."
Subject to reviews and Barloworld Ltd board approval, the transactions may conclude by 31 March.
Hyster's ultimate parent, Nacco Industries Inc, says: "Some time ago, Barloworld advised Nacco Materials Handling Group (NMHG) of their strategic intent to consider exiting the materials handling business in the United States. Over the past several months, we have worked with Barloworld to enable them to negotiate the sale of their materials handling business in the United States."
Both Briggs and LiftOne have expertise in the materials handling industry.
"The potential new owners have operated in materials handling for many years and are interested in purchasing our company's assets in order to expand their existing businesses," Blackbeard notes. "This is likely to mean that many Barloworld US employees will be offered employment by one of the new owners."
LiftOne has expressed interest in taking over the Barloworld Handling office building in Charlotte and its Form the Future (FTF) information technology system.
NMHG has expressed interest in Barloworld Handling's parts-distribution US logistics supply centre in Decatur, Georgia, according to Blackbeard.
Jonathan Dawley, president of NMHG's Hyster distribution, says: "We look forward to continuing our deep relationships with current Hyster customers" and developing solid relationships with new customers through Briggs and LiftOne.
Dallas, Texas-based Sammons, through Briggs International, is a major distributor of Yale forklifts, Hyster's sister brand.
The Sammons equipment distribution operations include Briggs Equipment US of Dallas, a major distributor of Yale-brand forklifts in the US; Briggs Equipment UK Ltd of Cannock, England, the sole national distributor of Yale brand materials handling equipment in England, Scotland and Wales; and Briggs Equipment of Mexico City, Mexico, a provider of long-term rental of Yale materials handling equipment in Mexico.
"This acquisition provides our customers with more product options and quicker response times," says Dave Bratton, Sammons chief executive officer.
In addition to equipment distribution, privately owned Sammons has businesses in insurance and financial services, hospitality and real estate.
Charlotte-based LiftOne is a full-service materials handling dealership with branch locations in North Carolina, South Carolina and Virginia. Currently, LiftOne represents Caterpillar and Mitsubishi lift trucks, Linde lift trucks, Ottawa/Kalmar and Jungheinrich.
Carolina Tractor has been in the materials handling business for more than five decades and is among the longest-serving Caterpillar Inc earth moving equipment dealers.
"Our primary focus through this change will be on minimising disruption for all of our customers," says Edward Weisiger, Carolina Tractor chief executive officer.
Based in Johannesburg, South Africa, Barloworld Ltd is described as the world's largest trader of forklifts, but apparently the US business experience in recent years has not matched the firm's rebound and success in the United Kingdom, Europe and South Africa
(Forkliftaction.com News #543). The decision to withdraw does not impact Barloworld forklift operations outside the US.
Barloworld Handling has major working relationships with NMHG management and the manufacturing facilities in Greenville, North Carolina for electric Classes 1, 2 and 3 forklift products; Berea, Kentucky for internal combustion Classes 4 and 5 equipment; and Sulligent, Alabama for transmissions and drive trains. Barloworld Handling accounts for less than 10% of NMHG's US production.
In addition to Hyster, Barloworld Handling in March 2010 obtained exclusive south-east US rights to distribute a line of compact electric rider trucks from V Mariotti SpA in Grugliasco, Italy.
Barloworld Handling also represents Bil-Jax boom and scissor lifts, Sellick truck-mounted and rough terrain lifts, Autocar trailer spotters and Rail King railway movers.
Barloworld Handling has leases on 30 branches in the eight south-east states of Alabama, Arkansas, Florida, Georgia, Mississippi, North Carolina, South Carolina and Tennessee.
Alwyn Smith became president of the US operation in July 2008 as successor to the retiring Stan Sewell, who held the position for nine years.
Barloworld Ltd distributes equipment from international brands to provide integrated rental, fleet management, product support and logistics solutions. Barloworld Ltd has business segments for construction equipment, automobiles, logistics services and material handling and has shares trading on the Johannesburg Stock Exchange.
A Barloworld entity began representing the Hyster brand initially in 1930 although it took Barloworld until 1979 to reach the US forklift market. Barloworld acquired Wrenn Brothers Inc, which had won the Hyster dealership rights for North Carolina, South Carolina and Georgia in 1949.
Global NMHG operations constitute the largest operating entity of Nacco Industries Inc of Mayfield Heights, Ohio. Shares of Nacco trade on the New York Stock Exchange.