Cascade Corp has acquired PSM Corp, a construction attachment manufacturer, based in Woodinville, Washington (Forkliftaction.com News #278).

Andy Anderson, Cascade's chief financial officer, said the purchase price was about USD40 million before working capital adjustments.

"While PSM's operating results will be included in our North American operating segment, and not reported separately, we expect the acquisition to add USD20 million to USD30 million in revenue [for 2007]."

PSM designs, manufactures and markets attachments and tools for medium- and heavy-duty construction vehicles used in the infrastructure, demolition, recycling, forestry, utility and general construction markets. PSM employs 120 people.

Cascade CEO Robert Warren said Cascade saw the construction attachment market as a natural extension of the company's present product line. Cascade manufactures materials handling attachments and forklift tools. Cascade has manufacturing facilities in North America, Europe and Asia and its annual sales are about USD450 million.

"Combining Cascade's and PSM's knowledge and resources will allow us to better serve existing PSM customers, significantly expand our geographic scope in the Americas, and begin producing construction attachments and tools in China for the Chinese domestic markets," Warren said.

Anderson said Cascade anticipated a "moderate increase" in 2007 capital expenditure as the company began "expansion activities" in North America and China.