Columbus McKinnon Set to Finalize Kito Crosby Acquisition Amid Strategic Divestitures
Columbus McKinnon Corporation, a leading provider of intelligent motion solutions, has provided a comprehensive update on its ongoing acquisition of Kito Crosby. This strategic move aims to bolster the company’s position in the material handling industry while simultaneously divesting specific product lines to streamline operations.
The company recently confirmed its commitment to finalizing the Kito Crosby acquisition by the first quarter of 2026. As part of this process, Columbus McKinnon is working closely with the Antitrust Division of the U.S. Department of Justice to facilitate the clearance needed for this significant merger.
In a parallel move, Columbus McKinnon has signed a definitive agreement to divest its U.S. power chain hoist and chain manufacturing operations. This sale, valued at $210 million—with an additional potential earn-out of $25 million—reflects a strategic decision to eliminate redundancies and simplify the combined product portfolio post-acquisition. The buyer, an affiliate of Pacific Avenue Capital Partners, LLC, is set to complete the transaction concurrently with the Kito Crosby acquisition.
David Wilson, President and CEO of Columbus McKinnon, remarked on the positive implications of this divestiture, stating, “We believe that the divestiture simplifies the portfolio, reduces debt, and will expedite progress towards the closing of the acquisition.” Wilson emphasized that despite these product lines being integral to the company’s legacy business, the anticipated merger with Kito Crosby will enhance customer value propositions over time.
The planned merger with Kito Crosby is expected to generate considerable operational synergies. Columbus McKinnon anticipates achieving around $70 million in annual cost synergies, which will not only empower the company to expand its market presence but also increase efficiency across diverse sectors. This scale will allow Columbus McKinnon to leverage enhanced capabilities and significantly broaden its global reach following the merger.
Another vital aspect of the acquisition involves the opportunity for aggressive debt reduction. Columbus McKinnon aims to decrease its net leverage ratio below 4.0x by the end of fiscal 2028, primarily using cash proceeds from the divestiture and onboarding cash flows generated post-acquisition. This financial strategy is designed to position the company favorably for sustained growth and reinvestment once the financial targets are met.
Looking ahead, Columbus McKinnon expects to see marked growth in combined cash flow generation as synergies are realized. The company remains hopeful that this financial trajectory will afford it opportunities to reinvest in innovation and expansion while adhering to its commitment to reducing debt.
The company also highlighted the attractive nature of its financial profile post-acquisition, forecasting net sales between $2.00 billion and $2.05 billion for the fiscal 2026 year, bolstered by a projected EBITDA margin of mid-20%.
As these strategic maneuvers unfold, investors and stakeholders remain optimistic about Columbus McKinnon’s ability to enhance its operational efficiency and competitive position in the market, setting the stage for long-term success through this transformative phase.
In summary, Columbus McKinnon is poised for an exciting future as it works to finalize a game-changing acquisition while streamlining its operations through significant divestitures, ensuring it remains a leader in the intelligent motion solutions sector at the forefront of innovation and market expansion.
The company recently confirmed its commitment to finalizing the Kito Crosby acquisition by the first quarter of 2026. As part of this process, Columbus McKinnon is working closely with the Antitrust Division of the U.S. Department of Justice to facilitate the clearance needed for this significant merger.
In a parallel move, Columbus McKinnon has signed a definitive agreement to divest its U.S. power chain hoist and chain manufacturing operations. This sale, valued at $210 million—with an additional potential earn-out of $25 million—reflects a strategic decision to eliminate redundancies and simplify the combined product portfolio post-acquisition. The buyer, an affiliate of Pacific Avenue Capital Partners, LLC, is set to complete the transaction concurrently with the Kito Crosby acquisition.
David Wilson, President and CEO of Columbus McKinnon, remarked on the positive implications of this divestiture, stating, “We believe that the divestiture simplifies the portfolio, reduces debt, and will expedite progress towards the closing of the acquisition.” Wilson emphasized that despite these product lines being integral to the company’s legacy business, the anticipated merger with Kito Crosby will enhance customer value propositions over time.
The planned merger with Kito Crosby is expected to generate considerable operational synergies. Columbus McKinnon anticipates achieving around $70 million in annual cost synergies, which will not only empower the company to expand its market presence but also increase efficiency across diverse sectors. This scale will allow Columbus McKinnon to leverage enhanced capabilities and significantly broaden its global reach following the merger.
Another vital aspect of the acquisition involves the opportunity for aggressive debt reduction. Columbus McKinnon aims to decrease its net leverage ratio below 4.0x by the end of fiscal 2028, primarily using cash proceeds from the divestiture and onboarding cash flows generated post-acquisition. This financial strategy is designed to position the company favorably for sustained growth and reinvestment once the financial targets are met.
Looking ahead, Columbus McKinnon expects to see marked growth in combined cash flow generation as synergies are realized. The company remains hopeful that this financial trajectory will afford it opportunities to reinvest in innovation and expansion while adhering to its commitment to reducing debt.
The company also highlighted the attractive nature of its financial profile post-acquisition, forecasting net sales between $2.00 billion and $2.05 billion for the fiscal 2026 year, bolstered by a projected EBITDA margin of mid-20%.
As these strategic maneuvers unfold, investors and stakeholders remain optimistic about Columbus McKinnon’s ability to enhance its operational efficiency and competitive position in the market, setting the stage for long-term success through this transformative phase.
In summary, Columbus McKinnon is poised for an exciting future as it works to finalize a game-changing acquisition while streamlining its operations through significant divestitures, ensuring it remains a leader in the intelligent motion solutions sector at the forefront of innovation and market expansion.
Topics Business Technology）
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