Bolzoni is a leading worldwide producer of attachments.

Hyster-Yale Materials Handling will buy Penta Holding S.p.A., the majority shareholder of Bolzoni S.p.A.

The two entities have entered into an agreement for Hyster-Yale to buy 100% of Penta's outstanding shares for EUR53,495,837 (USD 59.66 million).

Penta holds a 50.4% stake in Bolzoni S.p.A.

The transaction has been unanimously approved by the Board of Directors of Hyster-Yale.

The closing of the transaction, which is expected to take place during the second quarter of 2016, is subject to customary closing conditions, including clearance by the German antitrust authority.

Once the transaction is completed, Hyster-Yale, through an indirect wholly owned subsidiary, will launch a mandatory tender offer for all of the outstanding shares of Bolzoni S.p.A. and will then delist the company.

The acquisition is expected to be funded using Hyster-Yale's cash on hand and borrowings under Hyster-Yale's existing credit facility.

The Hyster-Yale acquisition will give "a wider spectrum of products to an already leading global materials handling business and provide an important platform for additional growth", according to the corporate announcement.

Based in Piacenza, Italy, Bolzoni is a leading worldwide producer of attachments for forklifts under the Bolzoni Auramo and Meyer brand names.

Under the terms of the transaction, following the closing, Bolzoni will become a subsidiary of Hyster-Yale, but is expected to continue to operate as a stand-alone business, with its own management team and Board of Directors. Roberto Scotti, Bolzoni's current chief executive officer, is expected to continue to lead Bolzoni following the completion of the transaction.

Colin Wilson, president and chief executive officer of Hyster-Yale Group, Inc., says Bolzoni is well-known as a reliable world-class supplier of attachments and has become the preferred supplier for Hyster and Yale products.

"Bolzoni has been investing in capacity expansion, and we see an opportunity to leverage this by absorbing Bolzoni's unused capacity," he says. "Bolzoni's historical strength is in Europe, which has growth opportunities, but Bolzoni has also been expanding in the Americas and has a presence in China, where we want to expand. We also envision using our global independent dealer network and strong relationships with customers with whom we sell directly to expand the sales of Hyster and Yale products fitted with Bolzoni's excellent range of specialised attachments."