Thomas Equipment to Buy Tovel Manufacturing

November 3, 2005 —Thomas Equipment, Inc., Centerville, New Brunswick, Canada, recently announced it has signed a letter of intent to buy the assets of Ontario Limited dba Tovel Manufacturing, located near Toronto. Tovel promotes and markets its product line of Superlift vertical mast and Tovelazer telescopic boom forklifts globally.

 

Both companies expect a definitive agreement to be signed within the next two weeks. Thomas also reached an agreement in principal with Hyundai Heavy Industries (HHI), Ltd., to expand its strategic OEM agreement with HHI to include its purchasing from Thomas' Tovel line of products.

 

"This acquisition is a compelling value proposition for Thomas,” said Thomas Chairman David M. Marks. “Building upon our already solid relationship with Hyundai, we will accelerate the distribution of Tovel products."

 

According to Marks, the Tovel transaction is compelling on many levels. “First, it represents a solid value proposition for Thomas' shareholders,” he said. “Second, adding this line of products to our OEM relationship with Hyundai will create additional synergies.”

 

Clifford Rhee, Thomas CEO and president, added that the Tovel line of products will reinforce Thomas' existing distribution channels. "I am very pleased to finally move forward with this acquisition," he said.