Maximal Hyster Yale Dealer Letter 120617

 

December 6, 2017


To All Maximal Dealer Principals:


We are pleased to announce that we have entered into a definitive agreement to sell 75 percent of the outstanding shares of, and a controlling interest in, Zhejiang Maximal Forklift Company to an indirect wholly-owned subsidiary of Hyster-Yale Materials Handling, Inc. The remaining 25 percent share of the new company, which will be named Hyster-Yale Maximal Materials Handling Co., Ltd. (“HY Maximal”), will be owned by current Zhejiang Maximal Forklift (“Maximal”) senior management through a new company, Y-C Hong Kong Holding Company Limited.


Hyster-Yale, headquartered in Cleveland, Ohio in the USA, is one of the top materials handling companies in the world. It offers a broad array of solutions to meet the specific materials handling needs of its customers’ applications, including attachments through its Bolzoni subsidiary and fuel cell power options through its Nuvera subsidiary,as well as telematics, automation and fleet management services. Hyster- Yale designs, engineers, manufactures, sells and services a comprehensive line of lift trucks and aftermarket parts marketed globally primarily under the Hyster® and Yale® brand names. Hyster-Yale also markets utility lift trucks under the UTILEV® brand name.


The closing of the transaction, which is expected to take place during the first half of 2018, is subject to customary closing conditions and required regulatory approvals. Following the closing, HY Maximal will be a subsidiary of Hyster-Yale, but is expected to continue to operate as a separate entity, with its own Board of Directors and managed by the current Maximal management team, led by me, as Chief Executive Officer. HY Maximal will maintain its headquarters at our current facility in the Lushan Industry Area, near Hangzhou.


After a successful over 10-year history in the forklift market, this is understandably an important step for our company. You have come to know us as a serious and reliable partner, capable of providing highquality products and services. This deal was driven primarily by a desire to enhance our ability to meet the demands of the customers we serve and to grow. We believe the partnership with Hyster-Yale will enable our operation to enhance the quality of our products, design improved new products with better performance and improve management and operational systems and processes. As a result, we envision that in the future your dealership will be able to offer a broader and more competitive range of Maximal products.


Hyster-Yale expects to be able to utilize some of our excess capacity by consolidating manufacturing operations to achieve economies of scale and to produce trucks for global distribution. At this time, we do not anticipate any changes to the existing products manufactured by Maximal and distributed by you. In the long term, Hyster-Yale plans to work to enhance the product range and performance of the Maximal products to make them more competitive in the market.


We expect you, our dealers, to benefit from the acquisition by being part of a bigger organization with global influence and presence. Maximal’s dealer distribution channel is expected to continue to distribute the Maximal brands, and Hyster-Yale’s distribution channel is expected to continue to distribute their brands.


We want to assure you that this transaction will in no way disrupt our ability to provide you with the high level of service that you have come to expect from Maximal– for us, it is business as usual. We would also note that today’s announcement is just the first step. Until the transaction is closed, we will remain separate from Hyster-Yale and must continue to operate independently. We ask for your patience as we work through the process, but please know that it is our intention to provide you and your staff with any tools and training you will need to sell and service products and to bring them to market in the future in a way that maximizes the benefits for you and your customers alike. We will work diligently to ensure this new business is mutually beneficial.


We will share more details as soon as they are available


Sincerely,

 


Mr. Lu Jin Hong
Chairman