Toyota Industries Corporation (TICO) has entered into a definitive agreement to acquire Tailift Company., LTD which manufactures forklifts in Taiwan and China. In a releases from Tailift it states that in view of the efficiencies to be gained from specialization and re-organization, the shareholders’ meeting of Tailift Co. Ltd. had adopted a resolution to establish a new company by spinning off the forklift division, including the division’s business, operations, plants, assets and liabilities, etc.. The major shareholders of Tailift have entered into a definitive agreement with Toyota Industries Corporation (“TICO”) under which TICO will indirectly invest in the spun-off business and, together with the said shareholders, will jointly operate the spun-off forklift business in the future.
After TICO has invested in the new spun-off business in future, the operation and management of the new forklift business entity will be as follows:
The operation and management of the new entity will still follow the operation and management to be directed by the Lin family. As to the new entity’s sales organization, agency system, distribution system and customer policies and benefits, these will continue to be operated and maintained basically along the lines originally planned by the Lin family.
Chairman Lin Xi-wen will continuously lead and manage the new forklift business until 2020, when Chairman Lin Xi-wen will reach the expected retirement age of 70 years old. Thereafter, the operation and management of the business may be passed to second generation, continuing the close cooperation with TICO in the operation of the business.
In general, TICO is the global leading brand in the forklift sector, with a strong position in the development, manufacture and sale of products in the high-end market. Upon TICO’s implementation of its investment in the forklift business, the new entity aims to further expand the business’s product line-up, introduce TICO’s manufacturing management (TPS), and increase sales of forklift trucks through TICO’s expertise in its global sales experience and know-how. The parties intend to maximize synergy by leveraging the strengths of both parties to achieve further growth of the forklift business not only in emerging countries but also in the world market as a whole. The parties to the new forklift entity are excited about its prospects and sincerely hope that the new entity and its business partners will succeed and create value for all involved.
