Wisconsin Lift Truck chief operating officer Jerry Wiedmann.

Mitsubishi Caterpillar Forklift America's (MCFA) two brand one channel distribution strategy is in progress with two US forklift dealers exchanging territories and sharing brands.

Brookfield-based Wisconsin Lift Truck (WLT), a Caterpillar dealer for Wisconsin and Illinois, has sold its Illinois operations to Chicago-based Material Handling Services (MHS), a Mitsubishi dealer for Wisconsin and Illinois. In the exchange deal, MHS sold its Wisconsin operations to WLT. Acquisition prices were not disclosed.

WLT chief operating officer Jerry Wiedmann said MCFA wanted one dealer selling both brands.

The transaction means WLT is now the Caterpillar and Mitsubishi dealer for all of Wisconsin, except the western part. MHS is now Caterpillar and Mitsubishi dealer in northern Illinois.

Adding MHS's operations to WLT provided "more alternatives to meet customers' needs", Wiedmann said. WLT is also a dealer for Drexel, Aisle Master, Combilift, Taylor and Trackmobile.

MHS's parent company, New York-based Pon North America Inc, initially intended to buy all of WLT (Forkliftaction.com News #245).

But Wiedmann said Pon and WLT were unable to agree on the sale.

"Ongoing discussions led to a counter proposal to exchange WLT's Illinois operations for MHS's Wisconsin operations," he said.

"WLT and MHS will be separate companies, operating in separate markets."

The acquisition adds 60 staff, including 39 service technicians in Wisconsin, for WLT and increases its rental fleet by more than 100 forklifts. MHS has increased employees by 100, including 50 service technicians in Illinois. Its rental fleet has expanded by more than 250 forklifts.

MCFA spokesperson AJ White said the two brand one channel distribution strategy would "better serve customers, improve distribution and help the company compete more effectively with other manufacturers".

Any changes in distribution would be incremental and were "a matter of internal business strategy", he said.