Forklift attachments manufacturer Cascade Corporation has entered into a preliminary agreement to acquire troubled German manufacturer, Falkenroth Fördertechnik GmbH & Co.
In what represents the formalisation of talks announced in the company's financial statements last month (Forkliftaction.com News #173
), Cascade is negotiating to purchase Falkenroth's assets from its German trustee.
The acquisition of the once "major German competitor" would widen Cascade's product offering and foothold in Europe, said Cascade chief financial officer Andy Anderson.
"It also provides our OEM customers with assurance that the capacity will be available to meet their production requirements, even in the most rapidly-expanding markets," he said.
Anderson told Forkliftaction.com News
that Cascade was one of several, unnamed companies invited by the trustee to make offers on the Falkenroth business.
He would not comment on whether Falkenroth had been an acquisition target for Cascade before it collapsed earlier this year. Cascade made two key acquisitions in 2003: the German fork tyne manufacturer FEMA Forks (Forkliftaction.com News #102
); and Italian attachments maker Roncari Srl in October (Forkliftaction.com News #131
Now that a principle bidder for Falkenroth has been identified, the acquisition is expected to proceed quickly. Cascade would make a further announcement on the deal "within the next two weeks", Anderson said.