DE sells forklifts that include brands from Mitsubishi Forklift Trucks, Cat Lift Trucks and Jungheinrich.
Mitsubishi Heavy Industries Ltd (MHI) has acquired Daily Equipment Company (DE), an American forklift dealer based in Jackson, Mississippi.
MHI wants to boost its service operations in North America, a core market for its forklifts and other logistics equipment, by expanding its direct sales network. The acquisition of DE for an undisclosed sum was carried out by MHI subsidiary Mitsubishi Caterpillar Forklift America Inc (MCFA) in Houston, Texas.
DE was established in 1985 with about 160 employees. Headquartered in Mississippi, the company maintains six sales bases in the state and neighbouring Louisiana. DE sells forklifts and other logistics equipment including three product brands handled by MCFA - Mitsubishi Forklift Trucks, Cat Lift Trucks and Jungheinrich.
MHI plans to expand DE's sales of forklifts, parts and service while retaining management.
The acquisition will not only expand MHI's direct sales network, but is also expected to create efficiencies with MCFA's factory-owned dealers in North America.
In its medium-term business plan launched in 2012, MHI says it wants to strengthen its forklift operation's earning base by implementing two core policies - reorganising its global production structure and boosting service operations.
Production and business restructuring processes for MHI are already under way in Japan and Europe. With the fortification of its service operations in the North American market, the company says it is accelerating its initiative to grow its global share in the forklift market. It has targeted sales of JPY250billion (USD2.872 billion) for the fiscal year 2014 (ending 31 March 2015).