Columbus McKinnon Acquires Kito Crosby for $2.7 Billion

News Summary

Columbus McKinnon Corp. announced its acquisition of Kito Crosby for $2.7 billion, signaling a major shift in the materials handling industry. This deal aims to boost their combined revenue to $2.1 billion and expand workforce numbers significantly. Despite a drop in Columbus McKinnon’s stock after the announcement, the potential for growth in markets such as Asia and increased operational synergies provides a promising outlook for the future.

Big Business Moves in Arlington: Columbus McKinnon Acquires Kito Crosby for $2.7 Billion!

Exciting news is buzzing in the business world as Columbus McKinnon Corp., known for its expertise in materials handling solutions, has made a significant play by acquiring Kito Crosby, a well-respected manufacturer based right here in Arlington, Texas. This blockbuster deal, which rings in at a whopping $2.7 billion, is poised to shake up the industry and expand the reach for both companies involved.

The Details Behind This Major Acquisition

Earlier this month, the deal was officially announced, and all the fine print was filed with the U.S. Securities and Exchange Commission on February 10. This acquisition not only showcases Columbus McKinnon’s ambition but also represents Kito Crosby’s journey under the ownership of Kohlberg Kravis Roberts & Co. (KKR). Since KKR took over in 2013, Kito Crosby has seen astronomical growth, quadrupling its workforce and more than doubling its revenue to reach a staggering $1.1 billion in 2024.

Expansion and Growth on the Horizon

With this acquisition, Columbus McKinnon expects to significantly strengthen its standing as a provider of intelligent motion solutions. The combined efforts are anticipated to generate an impressive annual revenue of $2.1 billion and adjusted pretax income of around $486 million. That’s certainly cause for celebration!

This deal means not just financial figures but also an increase in workforce size. Columbus McKinnon, currently employing over 3,000 people globally, is set to grow its number of employees beyond 7,000 once the acquisition closes. Kito Crosby operates 40 factories, offices, and distribution locations around the world and boasts a total of 4,000 employees. Together, they have the power to make a real impact in the materials handling industry.

The Future Looks Bright…But Watch the Numbers

Even with all these positive updates, the stock market reaction hasn’t been completely sunny. Following the announcement, Columbus McKinnon’s stock fell about 40%. Additionally, the company’s quarterly earnings report revealed a 7.9% decrease in revenue for the third quarter of fiscal year 2025, sparking some concerns over the future health of the business.

But there’s good news too! Columbus McKinnon anticipates realizing about $70 million in annual net cost synergies by the third year after the transaction’s completion. And let’s not forget the geographical advantages: this acquisition significantly enhances their reach, especially in Asia, hitting the sweet spot for a growing market. It also complements their existing strengths across Latin America, Europe, the Middle East, and Africa.

Financials and Advisors in the Mix

To finance this hefty acquisition, Columbus McKinnon plans to leverage $3 billion in debt from J.P. Morgan, alongside an additional $800 million incoming from a private equity investment from Clayton, Dubilier & Rice. The big names in finance don’t stop there; a plethora of advisors are backing both companies, adding layers of support as they navigate these exciting changes.

Looking Ahead

As we keep our fingers crossed for regulatory approvals later this year, the future is looking eager and ready for both Columbus McKinnon and Kito Crosby. With all these developments, Texas is once again proving to be a significant player in the game of national and global business!

Deeper Dive: News & Info About This Topic

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