Nissan Forklift Europe BV, a subsidiary of Japan''s Nissan Motor Company Ltd., has signed an agreement with the shareholders of Atlet AB of Sweden to acquire the entire equity of the Swedish warehouse equipment manufacturer.

Nissan Forklift''s main products are engine- and battery-powered counterbalanced forklifts. Its main markets include Europe, the US and Japan. Atlet has a strong presence in Europe, its main market, and is expanding into emerging markets.

But benefits of the deal are expected in more than the marketing arena. The two companies should gain from an exchange of technology and manufacturing know-how, and joint purchasing opportunities will be exploited to improve cost competitiveness.

The two companies together make more than 36,500 units worldwide a year (including 30,000 at Nissan), and their aggregate annual turnover is €858 million (including €676 million at Nissan). Both brands and sales networks will be operated separately in the market.

"Atlet is the ideal partner for us to reinforce our position as a major player in the global material handling market thanks to their high quality products, which complement our existing product line-up," said Toshio Aoki, corporate vice president of Nissan Motor and head of its industrial machinery division, which controls the forklift unit''s operations.

Marianne Brismar, Atlet''s CEO, believes that "Nissan Forklift is a natural fit for us. Not only will we have the opportunity to strengthen our product range under our existing brand name, but we will also be able to expand into new markets."

Atlet, founded 49 years ago by Knut Jacobsson, continued to be owned by his family. He says, "With no natural family succession, we wanted to find an industrial partner to allow us long-term development and to further strengthen the Atlet brand." He said the new deal was "an industrial solution" that "opened great potential for an exciting and rewarding future for our employees".

The two companies'' agreement of 5 September 2007 is a big step ahead from an existing relationship between them, which began in 2002 with an OEM agreement for Atlet to make equipment for Nissan Forklift for selected European markets.

Nissan is expected to appoint a new chief executive at Atlet; Brismar, the current CEO, will become special advisor to Atlet. The acquisition is expected to be completed by end-2007, pending approval by the EU Commission.

Nissan began making forklifts in 1957, and now has production facilities in Japan, the US and Spain. It has about 1,400 employees (including in subsidiaries). Atlet, started production in 1958, and now has about 1,000 employees (including in subsidiaries)