Newsletter #001 (View other news stories)
CLARK MHC SELLS BLUE GIANT FOR US$11 MILLION
Lexington Kentucky, United States
Friday, 15 Sep 2000
LEXINGTON, Kentucky, USA -- Clark Material Handling Company is selling the assets of its Blue Giant units to TBM Holdings Inc subsidiary, Long Reach Holdings Inc, for US$11 million.
The company this week confirmed it had signed a letter of intent to sell the assets of its wholly owned sister companies, Blue Giant Ltd and Blue Giant Corporation, to Long Reach. Clark expects to close the deal by November.
Blue Giant Ltd manufactures loading dock and safety equipment, from full- sized mechanical and hydraulic dock levelers to industrial walkies and lift tables, while Blue Giant Corp manages the industrial truck business.
When the deal is finalised, Blue Giant Corp will change its name to Clark.
Only one Blue Giant company, based in Toronto, Canada, will remain.
The sale of the Blue Giant assets is subject to approval by the bankruptcy
court, as is a cross-sourcing of Clark/Blue Giant product with TBM. The deal
also requires the consent of Blue Giant Corporation's lender.
Clark filed voluntary reorganisation petitions under Chapter 11 of the US Bankruptcy Code in April. The company has since shifted its forklift production operations from its Lexington headquarters to facilities in Korea, Germany and Alabama.
Clark is selling Blue Giant as part of a broader restructuring plan under its Chapter 11 commitments, and the transaction is subject to due diligence.
TBM, established in June last year, is an investment vehicle, "empowered with capital, resources, management and powerful operating strategy" which acquires manufacturing companies, says TBM president Bill Schwartz.
The company acquired Long Reach, manufacturer of materials handling equipment and forklift attachments, in February. In May, Long Reach acquired Lee Engineering Company, makers of pallet stackers, scissor lifts and dock lift under the Presto brand.
Mr Schwartz said he was "elated" at the purchase of the Blue Giant assets and distribution.
"The potential acquisition of Blue Giant as an add-on acquisition for Long Reach reflects our growth strategy in the materials handling industry," he said.
Mr Schwatrz said TBM had been "considering several opportunities" to acquire niche manufacturers, and Blue Giant had emerged as the company with the most "significant growth potential".
"Blue Giant's products are highly complementary with our Presto Lift and Rol-Lift products. The agreement includes cross-sourcing of product from Clark to TBM under the Blue Giant name and TBM to Clark under the Clark ame," he said.
Mr Scwartz said he expected the companies to share a lengthy relationship, and that both would "benefit greatly".
Clark chairman Martin M. Dorio Jr said Clark wanted to focus on its "core products", and was "excited" at the partnership.
"While Clark is pleased with the progress Blue Giant has made, its product lines are peripheral to Clark's core business, which is a leading forklift supplier," he said.
"TBM is a growing company in material handling and ergonomic equipment and will commit the resources and capital necessary to grow the Blue Giant business on a worldwide basis."
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