Nikken enters Australia with acquisition

Japan-based rental company Nikken Corp announced on 23 December that it had entered the Australian market with the 100% acquisition of Chadwick Forklifts Pty Ltd (CFL), an Australian re-rentals specialist based in Victoria. The terms of the deal have not been disclosed.

Chadwick’s fleet includes rough terrain telehandlers, industrial forklifts and stackers, and according to its website specialises in wholesale rentals to many of Australia’s largest rental companies.

Nikken is the third of Japan’s major rental businesses to enter the Australian market, with both Kanamoto and Nishio Rent All already operating rental subsidiaries in the country.

Chadwick’s depot in Sunshine West, near Melbourne. (Image: Chadwick Forklifts)

Nikken said overseas expansion was a “key driver” of its long-term growth; “In Australia, where population growth and infrastructure investment are expected to continue, CFL has built a strong forklift rental and maintenance business since 2003 and is highly regarded by its customers.

“This acquisition marks Nikken’s entry into the Australian market, and by sharing the expertise it has developed in Japan, Nikken aims to further enhance CFL’s value.”

The Japanese company said it would apply the same approach to business that it adopts in Japan; “prioritizing safety, respecting local culture and values, and working with communities to support a circular economy through its rental business in Australia.”

CFL, under CEO Shane Mathias, operates two locations in Melbourne, Victoria. It was established in October 2003.

Mathias wrote on LinkedIn; “There are significant synergies between the two companies who both share a passion for people, culture, service and equipment rentals.

“Customers in the Australian market will benefit from an ongoing and strengthened focus on the supply of high quality and innovative material handling assets underpinned with exceptional customer service. We are excited about what the future holds together.”

Nikken is one of the big four rental businesses in Japan, the others being Aktio, Nishio Rent All and Kanamoto. All are, to varying degrees, expanding their operations outside Japan, mainly in South East Asia and China, but also Australia.