News story

Nacco spinning off materials handling business

Wednesday, 4 July 2012 ( #572 ) - Mayfield Heights, OH, United States
Nacco Industries Inc intends to spin off its materials handling business which, at USD2.54 billion, accounted for more than 76% of Nacco's 2011 sales. As disclosed in a 28 June securities filing, Nacco expects to launch an independent public company, identified as Hyster-Yale Materials Handling Inc. The entity will own and operate the Nacco Materials Handling Group (NMHG) subsidiary of Nacco Industries. No stock will be issued in connection with the spin-off, and, as a result, Nacco Industries will not receive any proceeds from the move. Other Nacco subsidiaries include the North American Coal Corp mining service, Hamilton Beach Brands Inc small appliance and Kitchen Collection LLC specialty retail businesses. None of the Nacco filings listed a date for the completion of the spin-off. NMHG designs, engineers, manufactures, sells and services lines of forklifts and aftermarket parts marketed globally primarily under the Hyster and Yale brand names, mainly to independent retail dealerships. Nacco stockholders will receive shares in Hyster-Yale Materials Handling, while retaining their shares of Nacco Industries common stock. As with Nacco Industries' capital structure, Hyster-Yale Materials Handling will have two classes of stock. In the spin-off, Nacco stockholders will receive one share of Hyster-Yale Materials Handling Class A common stock and one share of Hyster-Yale Materials Handling Class B common stock for each share of Nacco Industries Class A or Class B common stock owned on the record date for the spin-off. Financial services firm Robert W Baird & Co of Milwaukee, Wisconsin is advising Mayfield Heights-based Nacco in connection with the transaction. NMHG accounted for USD2.54 billion of Nacco Industries' sales of USD3.33 billion for the year ended 31 December. On a geographic basis, USD1.57 billion of NMHG's sales were in the Americas, USD751.7 million in Europe and USD218.4 million elsewhere. As of 31 December in the Americas, Hyster had 43 independent dealers and Yale had 66. In Europe, Hyster had 55 independent dealers and Yale had 98.