WASHINGTON (dpa-AFX) - Columbus McKinnon Corp. (CMCO) on Monday announced a definitive agreement to acquire Kito Crosby Ltd, a manufacturer of lifting and material handling products, for $2.7 billion.
The all-cash deal with the funds managed by global investment firm KKR & Co. Inc. (KKR) is expected to be closed later this year, subject to regulatory approvals and other conditions.
The transaction is expected to be accretive to adjusted earnings per share in the first year, following the closing of the deal, and increase over a period of time as more targets are met.
Columbus McKinnon, which manufactures material handling solutions, is looking to secure $70 million in annual net cost synergies by the third year of the acquisition.
Columbus McKinnon said that on a pro-forma basis, the combined company is expected to have annual revenue of $2.1 billion, adjusted EBITDA of $486 million and an adjusted EBITDA Margin of 23%. The combination is expected to help the company meet its fiscal year 2027 financial targets on a faster scale.
Columbus McKinnon intends to fund the deal through a combination of committed debt financing of $3.050 billion from J.P. Morgan.
As part of the transaction, Columbus McKinnon has joined hands with private investment firm CD&R to complete the deal. Following the acquisition, Mike Lamach, Nate Sleeper and Andrew Campelli will join the company's Board of Directors.
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