CLEVELAND, Dec. 18, 2014 /PRNewswire/ -- Hyster-Yale Materials Handling, Inc. (NYSE: HY) today announced that its operating company, NACCO Materials Handling Group, Inc. ("NMHG"), (collectively, the "Company") acquired Nuvera Fuel Cells, Inc.
Nuvera, located in Billerica, Massachusetts, is a development-stage technology and product development company focused on fuel cell stacks and related systems and supporting on-site hydrogen production and dispensing systems that can deliver clean energy solutions to customers. Nuvera's established reputation and leadership in fuel cell technology offers the Company the opportunity for direct access to fuel cells particularly suitable for lift truck applications, as well as the supporting fuel technologies that are applicable to its product lines.
Following the acquisition of Nuvera, the Company intends to commercialize Nuvera's research and technology through the rapid integration of this fuel-cell technology across large parts of the Company's lift truck product range. The Company expects to be able to offer its Hyster® and Yale® customers an integrated, factory-fitted fuel-cell solution as well as associated hydrogen generation and delivery capability. In addition, the Company will offer aftermarket solutions designed to fit most any electric powered lift truck brand in the market today. The Company will market these solutions in partnership with its leading independent distribution, national account sales teams and fleet management services to existing and new Hyster® and Yale® customers.
Over the past few years, the Company has been focused on increasing unit volume through market share gains by delivering lowest cost of ownership to its customers in a wide range of applications. In this context, the Company has been evaluating and investing in a broad range of alternative power sources for its lift trucks, The purchase of Nuvera is a strategic acquisition which is expected to provide a platform to expand the Company's offering of best-in-class energy solutions to customers.
While Nuvera technologies have proven capabilities, commercialization of products that utilize these technologies remain in the development stage. As a result, Nuvera is expected to generate significant operating losses over the next two to three years before it can fully commercialize the technology and achieve breakeven results. The acquisition was completed for a modest purchase price with certain contingency payments that are expected to be paid to the selling shareholders based on future deployment of certain elements of the acquired technology. In addition, Hyster-Yale expects to expense up to $40 to 50 million over the next two to three years for additional research and development to commercialize the technology and reach break-even.
The Company believes it is the first major lift truck company to commit to the full deployment of fuel cell solutions for its customers. The acquisition of Nuvera creates a unique capability to integrate fuel cell with lift truck in a way which optimizes the performance and energy efficiency of the combined system, in conjunction with the ability to provide full life cycle maintenance, service and fueling requirements, to meet customers' needs and offer a low overall cost of ownership alternative.
Over the past 10 years, Nuvera has succeeded in developing world class, clean energy solutions. The Company believes the technology is now ready for full commercialization in Hyster® and Yale® products. The Company is confident that the skills of the Nuvera team and quality of their technology combined with the Company's leading product development, distribution and service organizations will ensure a solution which exceeds customers' expectations.
About Hyster-Yale Materials Handling, Inc.
Hyster-Yale Materials Handling, Inc., headquartered in Cleveland, Ohio, through its wholly-owned operating subsidiary, NACCO Materials Handling Group, Inc., designs, engineers, manufactures, sells and services a comprehensive line of lift trucks and aftermarket parts marketed globally primarily under the Hyster® and Yale® brand names. For more information about Hyster-Yale Materials Handling, Inc. or NACCO Materials Handling Group, Inc., visit the Company's website at www.hyster-yale.com.
About Nuvera Fuel Cells, Inc.
Nuvera Fuel Cells is a leader in the development of fuel cell systems and hydrogen generation and dispensing products for both end users and OEMs. With facilities located in the U.S. and Europe, Nuvera provides clean, safe, and efficient products designed to meet the rigorous needs of mobile industrial vehicles and other industrial and transportation markets.
Forward-looking Statements Disclaimer
The statements contained in this news release that are not historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are made subject to certain risks and uncertainties, which could cause actual results to differ materially from those presented. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Among the factors that could cause plans, actions and results to differ materially from current expectations are, without limitation: (1) reduction in demand for lift trucks and related aftermarket parts and service on a global basis, (2) the ability of dealers, suppliers and end-users to obtain financing at reasonable rates, or at all, as a result of current economic and market conditions, (3) the political and economic uncertainties in Eastern Europe and Brazil, (4) customer acceptance of pricing, (5) delays in delivery or increases in costs, including transportation costs, of raw materials or sourced products and labor or changes in or unavailability of quality suppliers, (6) exchange rate fluctuations, changes in foreign import tariffs and monetary policies and other changes in the regulatory climate in the foreign countries in which the Company operates and/or sells products, (7) delays in manufacturing and delivery schedules, (8) bankruptcy of or loss of major dealers, retail customers or suppliers, (9) customer acceptance of, changes in the costs of, or delays in the development of new products, (10) introduction of new products by, or more favorable product pricing offered by, competitors, (11) product liability or other litigation, warranty claims or returns of products, (12) the effectiveness of the cost reduction programs implemented globally, including the successful implementation of procurement and sourcing initiatives, (13) changes mandated by federal, state and other regulation, including health, safety or environmental legislation, (14) delays in or increased costs associated with the Brazil plant construction, (15) the successful integration of the Nuvera Fuel Cells acquisition, (16) the successful commercialization of the Nuvera technology and (17) a more accepted product is introduced to the market by a competitor, making the Nuvera technology less marketable.
SOURCE Hyster-Yale Materials Handling, Inc.