Hyster-Yale Materials Handling Inc. aims to bolster its market position by acquiring a 75% stake in Zhejiang Maximal Forklift Company for $90 million, enhancing its operational footprint in the growing Asia-Pacific market.

Target Information

Hyster-Yale Materials Handling, Inc. (NYSE: HY), headquartered in Cleveland, Ohio, specializes in materials handling solutions. The company's operating subsidiary, Hyster-Yale Group, Inc., designs, manufactures, and services a comprehensive range of lift trucks and aftermarket parts, primarily marketed under the Hyster® and Yale® brand names. As part of its strategic growth initiatives, the company has recently announced a definitive agreement to acquire a controlling interest in Zhejiang Maximal Forklift Company Limited, which emphasizes its focus on expanding its global footprint and bolstering its market position.

Hyster-Yale's financial performance in Q1 2018 highlights a revenue increase to $788.2 million, demonstrating a 10.5% growth compared to the same quarter in 2017. Despite this revenue growth, the company has faced challenges, including a decrease in operating profit attributed to higher material and manufacturing costs. The company's investments in strategic initiatives are aimed at long-term growth and sustainability.

Industry Overview

The materials handling industry has demonstrated resilience against various market fluctuations and remains pivotal in global supply chain efficiency. As economies continue to recover, demand for forklifts and related equipment is expec