News Releases
Announcement of the completion of the acquisition and commencement of operations of a U.S. sales financing operation which focuses on industrial vehicles
Toyota Industries Commercial Finance, Inc. (hereinafter “TICF”), a U.S. sales financing operation that focuses on industrial vehicles and that is a wholly owned subsidiary of Toyota Industries Corporation (hereinafter “TICO”), completed the acquisition of the operations and assets of the commercial finance business of Toyota Motor Credit Corporation (hereinafter “TMCC”), a U.S. sales financing operation that is a wholly owned subsidiary of Toyota Motor Corporation, and commenced operations on October 1, 2015.
By acquiring the financial assets and human resources of TMCC, TICF has acquired the know-how of sales financing operations that focus on industrial vehicles built up by TMCC over approximately 30 years. This will enable TICF to strengthen its sales financing operations in the U.S., and allow it to target the full-scale global expansion of its sales financing operations in the future.
The acquisition was first announced on October 31, 2014, in a release entitled, “Establishment of a global sales finance management company and acquisition of a U.S. sales financing operation.” However, since the acquisition has now been completed and since operations have now commenced, TICF is making this announcement anew.
Details
1.Overview of the operations and assets acquired by TICF:
| 1) | Target of acquisition: | financial assets, business rights, etc. |
| 2) | Value of acquisition: | approx. 2,300 million U.S. dollars |
| 3) | Date of acquisition: | October 1, 2015 |
2.Reasons for TICF's acquisition of operations and assets:
With regard to the sale of industrial vehicles, in order to cater to customer needs for lease and rentals, TICF deemed it necessary to acquire TMCC's outstanding know-how and become independent in its sales financing operations. More specifically, TICF intends to strengthen collaboration with dealers, strengthen its value chain—from sales of new vehicles to maintenance services during the holding period, to the sales of used vehicles after completion of the lease—and maintain long-term relationships with its customers. TICF is considering developing and expanding its operations in the U.S., major European countries and emerging countries in Asia and South America, and is targeting further growth for its industrial vehicles operations.
3.Overview of TIGCF (sales finance global management company)
| 1) | Company name: | Toyota Industries Global Commercial Finance, Inc. |
| 2) | Establishment: | November 3, 2014 |
| 3) | Operation start: | October 1, 2015 |
| 4) | Head office location: | Torrance, California, U.S.A |
| 5) | Name of representative: | Chairman: Takuo Sasaki (TICO Senior Managing Director) President: Dave Crandall |
| 6) | Capital: | 400 million U.S. dollars |
| 7) | Stock ownership (100%): | Toyota Industries North America, Inc. (U.S. holding company wholly owned by TICO) |
| 8) | Primary business: | Promotion and management of sales finance operations for materials handling equipment all over the world |
4.Overview of TICF
| 1) | Company name: | Toyota Industries Commercial Finance, Inc. |
| 2) | Establishment: | November 3, 2014 |
| 3) | Operation start: | October 1, 2015 |
| 4) | Head office location: | Torrance, California, U.S.A |
| 5) | Name of representative: | Chairman: Dave Crandall (TIGCF President) President: Norm Creveling |
| 6) | Capital: | 400 million U.S. dollars |
| 7) | Stock ownership (100%): | TIGCF |
| 8) | Employees: | 180 |
| 9) | Primary business: | Sales finance operations for the Toyota brand of materials handling and other equipments respectively in the U.S. |
5.Forward-Looking Statements
This press release contains forward-looking statements regarding TICO and the new company, such as projections, goals, plans, and strategies. These forward-looking statements do not guarantee future results and are based on known or unknown risks, uncertainties, and other factors that could cause TICO or the new company's actual results, development, or financial conditions in the future to differ materially from those indicated in this release. These forward-looking statements contain the words “anticipates,” “aims to,” “plans to,” “there is a possibility that,” and similar expressions and in particular, statements containing such words as “projection,” “goal,” “plan,” and “strategy.” Many factors may cause future results to differ materially from those set forth in these forward-looking statements described in this press release. These factors include but are not limited to the risk that the regulatory or other conditions necessary for completing the acquisition will not be satisfied, the effect of changes in the legal system or accounting standards affecting the parties or the business environment, issues in executing business strategies, the effect of financial instability or fluctuations in general economic conditions or industry conditions, and other risks related to the completion of the acquisition. Except as explicitly required by law, neither TICO nor the new company is under any obligation to update any forward-looking statements to reflect new information, future events, or other circumstances. The forward-looking statements contained in this release are subject to these conditions.