15.08.2007

Skyjack buys into telehandlers

Skyjack, the Canadian based aerial lift manufacturer has signed an agreement to acquire the Canadian telehandler manufacturer Carelift Equipment.

Carelift, founded in 1962, is based in Breslau, Ontario Canada, not so far from Skyjack. It produces a range of heavy duty telehandlers that it markets under the ZoomBoom brand.

The current product range runs from just under 10 metres to 19 metre lift height with lift capacities up to 14,500kgs.
Please register to see all images

The Carelift stand at Conexpo 2005 with the 14,500kg 32032

The terms of the deal are based on Skyjack acquiring the outstanding shares in Carelift, the purchase price has not yet been disclosed and the deal is subject to further due diligence.

“The addition of Carelift’s telehandler business along with the design and test abilities of the company opens up another large market for our Skyjack business,” said Linda Hasenfratz, CEO of Skyjacks owner, Linamar.

“The global telehandler market is worth $3 billion and growing. CareLift’s popular ZoomBoom brand is well positioned to increase market share by utilising Skyjack’s well established distribution network.”

“Carelift designs and builds durable, dependable rough terrain forklifts. Their telehandler product has regarded in the industry for high quality and reliability, which aligns with Skyjack’s existing product design principles.” She added.

Vertikal Comment

This is a surprise move by Skyjack and yet a very logical one, if the company had attempted to enter the market by starting from scratch it would have had an extraordinarily hard fight to make any impact at all on what is already a hotly contested market.

Carelift has a first class reputation in North America for making ultra tough telehandlers. They may not be the prettiest machines on the beach, but they are some of the most rugged and reliable.

Carelift is an established player with a solid customer base; however Skyjack can bring a lot to the party with its stronger distribution and marketing skills not to mention the skills for efficient manufacturing that it has acquired over the years from Linamar.

The market for telehandlers in North American has taken a hit these past six months as the housing downturn bites into new housing starts. In spite of this just the greater exposure that Skyjack can offer should help win a percentage point or so in market share, and for Carelift that equates to substantial additional sales.

While the Carelift product is too rustic for most European buyers, there are a number of buyers outside of North American who have expressed an interest in the larger Carelift models in the past, with Skyjacks greater experience at handling export business this could easily add further volume.

All in all it will be an excellent way for Skyjack to enter the telehandler market.

Its next challenge will be how to tackle the European market. As JLG will attest, this is no easy feat for manufacturers with an all American product line up. An acquisition would once again be its best avenue of attack.

Interesting times.