NEW YORK (AP) — Japanese transportation equipment company Toyota Industries, a sister company of automaker Toyota Motor Corp., is buying one of its suppliers, U.S. parts maker Cascade, in a deal valued at $759 million.
Toyota Industries Corp. will pay $65 per share for Cascade, the companies said Monday. That's an 18 percent premium to Cascade's Friday closing price of $55.08.
Toyota Industries makes lift trucks, parts for autos and some vehicles for Toyota Motor.
Shares of Cascade, which makes lift truck replacement parts, gained $9.72, or 18 percent, to $64.80 in morning trading.
Buying Cascade would help Toyota Industries expand its lift truck business, said Toyota Industries President Tetsuro Toyoda.
Both companies' boards approved the transaction, which is targeted to close by year's end. The company would become a Toyota Industries subsidiary, with its headquarters remaining in Fairview, Ore. CEO Robert Warren would continue to head its operations.
A tender offer is expected to start no later than Nov. 5.