Hyster-Yale Materials Handling Inc. has completed its acquisition of Zhejiang Maximal Forklift Co. Ltd. from KNSN Pipe & Pile Co. Ltd., giving it a controlling interest in the company that now takes the name Hyster-Yale Maximal Forklift Co. Ltd. Hyster-Yale now owns 75 percent of the outstanding shares of Maximal, which it bought for $90 million using cash on hand. Current Zhejiang Maximal Forklift senior management own the remaining 25 percent interest through a holding company. Maximal reported revenues of around $77 million, and generated an approximately 4 percent operating profit margin on combined domestic and export volume of nearly 7,000 units for the year ended December 31, 2017. The proposed acquisition is expected to be dilutive to the company's earnings over the next year by $5 million to $10 million pre-tax due to additional investments in expense and capital needed to implement the company's integration plan. Further, a one-time incentive-based payment of up to $10 million may become payable by the third anniversary of the closing upon the satisfaction of certain performance conditions. Get the strategic motivations for the deal from our earlier report.
