Japanese crane and aerial lift manufacturer Tadano is to acquire tracked aerial lift manufacturer Nagano - Nagano Industry to give it its full name - in an all share purchase deal from current owners - private equity firm JAFCO.
Nagano was established in 1968 as Nagano Kogyu making electrical components, quickly followed by mini tracked excavators. It began manufacturing a couple of telescopic boom lifts in 1984. For many years much of its production was taken up by OEM contracts with other companies, including Aichi's first platforms and tracked carriers for Marooka. Today the company produces a small range of tracked self-propelled boom lifts, with sales last year of ¥5.6 billion – just under $40 million.
Tadano's aerial lift sales for the nine months to the end of September were ¥11.3 billion ($75.5 million) down almost 14 percent on the previous year, putting it on track for annual revenues of around ¥15 billion ($100 million) or so.
The announcement made this morning does not mention a completion date, although given the size of the transaction, the fact that the Nagano owners are in agreement, and with Tadano moving to a calendar fiscal year, it is likely to occur at year end.
Tadano is a relatively small player in the global aerial lift market, but is among the market leaders in Japan, with a 30 percent share of the truck mounted market. Nagano quality is at the same level as Tadano, which many claim is at the very top of the market, so integration should be relatively easy.
This is a small but sensible move for Tadano which throws up more export potential. Tadano’s aerial lift sales have been languishing for a while and its exports are weak, to say the least. Nagano on the other hand has had some success in Europe in recent years, although overall revenues are surprisingly low. Nagano has not really worked out for the past two owners, but hopefully in the hands of a more attuned owner like Tadano, its excellent products will finally achieve the sales that they merit.
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