Business
Columbus McKinnon Expands Conveying Solutions Platform With Acquisition of Garvey Corporation
Extends growth catalyst with complementary technology that broadens precision conveying solutions offering in attractive markets with strong secular
About this update from Columbus Mckinnon Corporation
[{"type":"text","content":"\n\nExtends growth catalyst with complementary technology that broadens precision conveying solutions offering in attractive markets with strong secular tailwinds\n\n\nBrings market leading position for accumulation solutions in the food & beverage and life sciences/pharmaceutical industries\n\n\nCreates among the fullest lines of accumulation technology offerings in the industry\n\n\nProvides greater production line efficiencies with increasing use of automation\n\n\n5-year compounded annual growth rate of approximately 7%\n\n\nExpected GAAP EPS accretion in fiscal 2023 of $0.05\n\n\n BUFFALO, N.Y.--(BUSINESS WIRE)--\nColumbus McKinnon Corporation (Nasdaq: CMCO) (the “Company”), a leading designer, manufacturer and marketer of intelligent motion solutions for material handling, today announced that the Company has executed a definitive agreement to acquire Garvey Corporation (“Garvey”) for $74 million. The Company plans on financing the acquisition by borrowing $75 million utilizing the accordion option under its existing Term Loan B. The transaction is expected to close before the end of 2021. The additional borrowings are expected to result in a pro forma net debt leverage ratio of approximately 2.8x.\n\nGarvey is a leading accumulation systems solutions company providing unique, patented systems for the automation of production processes with approximately $30 million in revenue and $9 million in adjusted EBITDA for the trailing twelve months ended September 30, 2021.\n\nAdvancing Blueprint for Growth 2.0 Strategy: Expanding the Core\n\nDavid J. Wilson, President and CEO of Columbus McKinnon, commented, “The acquisition of Garvey is an excellent demonstration of our 2.0 framework for growth at work as we continue to transform Columbus McKinnon into a high value, intelligent motion enterprise. Garvey expands our higher growth, higher margin precision conveying solutions platform with its differentiated accumulation technology expertise and provides deeper market presence in the attractive and growing food & beverage and life sciences industries. And, we have a great opportunity to leverage our more extensive industrial market presence and geographic breadth to grow the business. The combination of Garvey and Dorner creates a highly scalable operation through the integration of the deep engineering expertise of both businesses...