Business
Columbus McKinnon to Combine with Kito Crosby Delivering Compelling Value Creation
Business combination materially improves scale and product scope, advancing Columbus McKinnon's strategy as the holistic provider of intelligent motion
About this update from Columbus Mckinnon Corporation
[{"type":"text","content":"Business combination materially improves scale and product scope, advancing Columbus McKinnon's strategy as the holistic provider of intelligent motion solutions in materials handlingComplementary portfolio enhances strategic positioning in attractive verticals and target geographies, delivering an even stronger portfolio of productsTransaction valued at approximately $2.7 billion at a ~8x TTM Adjusted EBITDA multiple post-synergiesExpected to create ~$70 million in annual net cost synergies, improving Adjusted EBITDA Margins1 to greater than 23% and is expected to more than double revenue and triple Adjusted EBITDA1 on a pro-forma combined basisSignificant combined cashflow generation expected to enable de-leveraging to Net Leverage Ratio1 of approximately 3.0x within two years post-closing2The transaction is expected to be funded with $2.6 billion in committed debt financing and an $0.8 billion perpetual convertible preferred equity investment from CD&RCHARLOTTE, N.C., Feb. 10, 2025 /PRNewswire/ -- Columbus McKinnon Corporation (Nasdaq: CMCO) (\"Columbus McKinnon\" or the \"Company\"), a leading designer, manufacturer and marketer of intelligent motion solutions for material handling, today announced a definitive agreement under which Columbus McKinnon will acquire Kito Crosby Limited (\"Kito Crosby\") from funds managed by leading global investment firm KKR in an all-cash transaction valued at $2.7 billion subject to customary post-closing purchase price adjustments. The Company expects the deal to close later this calendar year, subject to regulatory approvals and satisfactory completion of customary closing conditions.\n\n \n \n \n \n \n \n\n \n\"This is an important next step in further strengthening Columbus McKinnon's position as a scaled, holistic provider of intelligent motion solutions in materials handling. We've long had a great respect for Kito Crosby's strong portfolio of offerings. The business that the Kito Crosby management team, led by Robert Desel and Yoshio Kito have built is exceptional, and we look forward to welcoming them to the Columbus McKinnon team,\" said David Wilson, President and CEO of Columbus McKinnon. \"Through this strategic combination, we're creating a company that is extremely well-positioned to deliver real-world solutions for customers, with favorable tailwinds from megatrends, including...