Cascade reported operating profits of $87.4 million and net income of $63 million on sales of $535.8 million in the year ended Jan. 31 2012.

The company has built back sales and earnings following the 2008 downturn, which was shortly preceded by two acquisitions in the construction equipment sector that compounded Cascade's difficulties in its core business. Warren said Cascade's directors had explored a number of ways to increase returns to shareholders of its thinly traded stock, including stock buybacks and acquisitions outside its core business. The deal with Toyota, he said, represents an opportunity to create a global materials handling business with a wider product line and greater growth potential.

Cascades earnings have flagged in recent quarters due to lower sales in China and Europe and currency fluctuations. The company said earning in the second quarter dropped 8.8 percent to $12.6 million on slightly higher revenues of $136.4 million.

The deal is subject to regulatory approval in the U.S. and Europe. Toyota will begin a tender offer for Cascade shares no later than Nov. 5 and the companies hope to close the deal by the end of the year.

In trading on the New York Stock Exchange on Monday, Cascades shares jumped 18 percent, or $9.89, to close at $64.97.

Cascade Corporation, which manufacturers forklift attachments, was bought by Toyota.