Thomas Equipment Inc has signed a letter of intent to buy all the assets of 1221549 Ontario Ltd dba Tovel Manufacturing (Tovel).

Tovel, headquartered at Concord, near Toronto, Canada, manufactures Superlift vertical masts and Tovelazer telescopic handlers. The company initially manufactured mortar and plaster mixers.

In late 1970s it expanded operations by designing and manufacturing its first generation of heavy duty, two-wheel drive, vertical mast forklifts. The success of the TS6-44 and TS8-44 series has triggered demand for customised rough-terrain forklifts with greater weight and lift capacities.

Thomas has also reached an agreement in principal with Hyundai Heavy Industries Ltd (Hyundai). The agreement will expand its strategic OEM agreement with Hyundai to include the Korean forklift maker purchasing from the Tovel line.

Thomas CEO and president Clifford Rhee said the acquisition was compelling on many levels.

"First, it represents a solid value proposition for our shareholders. Second, adding this line of products to our OEM relationship with Hyundai will create additional synergies. Finally, the Tovel line of products will reinforce Thomas's existing distribution channels," he said.

Milwaukee-based Thomas Equipment Inc manufactures construction and industrial equipment, and potato harvesting and handling equipment.