Newsletter #001 (View other news stories)
RUMOURS SMOKE CLEARS, REVEALING NEW, MERGED CASCADE
Portland, United States
Friday, 27 Oct 2000
PORTLAND, USA -- Cascade Corporation has entered a merger agreement with an acquisition company formed by Lift Technologies Inc, manufacturer of lift truck masts, TD Capital Group Ltd, a member of the Toronto Dominion Bank Group, and the Ontario Municipal Employees' Retirement Board.
Under the agreement, each share of Cascade common stock will be converted into US$17.25 options. Cascade will become a wholly-owned subsidiary of a corporation formed by the acquiring group and will continue doing business under its present name.
The total value of the proposed acquisition is about US$320 million, including the assumption of outstanding debts.
James S Osterman, who chairs Cascade's special committee of the board overseeing the deal, said the merger agreement resulted from a process begun by the board in March, when the committee was appointed to evaluate a management buy-out proposal and other alternatives to "enhance value" for Cascade shareholders.
"The committee is assured that the merged company will carry forth the traditions of employee satisfaction, product innovation, and customer service that form the basis of Cascade's 57-year history of success," Mr Osterman said.
William J Harrison, founder and president of Lift Technologies, said the merger would create "an organisation combining the leading three load-handling products companies globally; Cascade Attachments, Kenhar Forks, and Lift-Tek Masts".
"Our plan is very clear; we will cause the new company to grow its market share, develop new products and services, and expand on our strong, competitive, manufacturing base," Mr Harrison said.
"In Cascade, Kenhar, and Lift-Tek, we will have the products, the facilities, the people and the determination to grow the company for the benefit of customers, employees, suppliers, and shareholders."
The merger is conditional upon regulatory and shareholder approvals and other conditions.
Cascade also announced that Greg H Kubicek would succeed C Calvert Knudsen as company chairman.
Cascade Corporation, headquartered in Portland, Oregon, is an international manufacturer of lift truck attachments, forks and accessories.
The Lift Technologies Group is a designer, manufacturer and distributor of lift masts to the materials handling industry, operating from three plants in North America and two in Europe.
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