Columbus McKinnon To Combine With Kito Crosby Delivering Compelling Value Creation; Transaction Valued At ~$2.7B

Author: Benzinga Newsdesk | February 10, 2025 05:17pm

• Business combination materially improves scale and product scope, advancing Columbus McKinnon's strategy as the holistic provider of intelligent motion solutions in materials handling
  
  
  
   
• Complementary portfolio enhances strategic positioning in attractive verticals and target geographies, delivering an even stronger portfolio of products
  
  
  
   
• Transaction valued at approximately $2.7 billion at a ~8x TTM Adjusted EBITDA multiple post-synergies
  
  
  
   
• Expected 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 basis
  
  
  
   
• Significant combined cashflow generation expected to enable de-leveraging to Net Leverage Ratio1 of approximately 3.0x within two years post-closing2
  
  
  
   
• The 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&R

CHARLOTTE, 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.

Posted In: CMCO KKR