If there is one thing people should take away from the deal Cascade Corp. signed with Toyota Industries Corp. it's this: never settle for less than what you think you deserve.
Toyota Industries announced that they will acquire Cascade Corp. for a stunning $759 million to improve Toyota's global customer cliental according to Futures Magazine.
Cascade produces replacement auto parts, forklift attachments and construction equipment for many industries, and had a partnership with Toyota Industries for a long time before the deal. When Cascade announced they were looking to sell the business, Toyota wasted no time making an offer.
The company wanted to make sure they got the best offer they could obtain for the company. So CEO Bob Warren, feeling Toyota's first offer was an insult, told Toyota that they wouldn't be accepting any "bottom-of-the-market low-ball offers" according to the Portland Business Journal.
No one can blame them for wanting the best deal possible, but since profits have declined drastically the past year or so it is surprising the company felt they had more leverage than the Japanese based company.
Toyota then politely stepped back from the deal they offered for a little while before offering Warren an improved offer. This time Warren felt it was a good deal.
"We've long known Cascade as a reliable and world-class supplier to our materials handling business," said Tetsuro Toyoda, the president of Toyota Industries, in a press statement. "We look forward to better meeting our customers' logistical needs by broadening our lift truck business."
The deal is supposed to kick by the end of December. Cascade President and Chief Executive Robert C. Warren Jr. will continue to control the business even after the deal is finalized.
The bid is worth $65 a share for the parts company, which bills itself as the largest supplier of "materials-handling attachments for lift trucks". This is Toyota's biggest purchase since 2000 when they took control over Caterpillar Inc. according to Bloomberg Buisnessweek.
"Our company has concluded that the offer being made by Toyota Industries Corporation, one of the world's most admired companies, represents an ideal combination of attractive return to our shareholders, continuing service to our customers, and stability and opportunity for our employees," said Warren in a press statement.
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