Columbus McKinnon Combines with Kito Crosby in $2.7 Billion Deal
Deal News | Feb 10, 2025 | Clayton, Dubilier & Rice, Inc.
Columbus McKinnon Corporation has announced a definitive agreement to acquire Kito Crosby Limited from KKR's funds in a $2.7 billion all-cash transaction. The deal is expected to significantly enhance Columbus McKinnon's scale and product offering in intelligent motion solutions for material handling. Expected synergies will result in an annual cost saving of $70 million, with a plan to double revenue and triple Adjusted EBITDA on a pro forma basis. The acquisition is seen as a strategic move to tap into megatrends such as reshoring and rising automation needs. The financial backing and participation of private equity firm CD&R are instrumental in facilitating this acquisition. Columbus McKinnon anticipates completing the integration and realizing value from combined operations, with the deal set to close within the year, pending customary regulatory approvals.
Sectors
- Industrial Machinery
- Private Equity
Geography
- United States – Columbus McKinnon is based in the United States and operates within the US market, making it central to the article.
- Global – Kito Crosby has a global presence, serving over 50 countries, which highlights a significant international aspect of the transaction.
Industry
- Industrial Machinery – This sector relates to the manufacturing of machinery used in industrial applications such as material handling, where companies like Columbus McKinnon and Kito Crosby operate.
- Private Equity – This involves investment firms like Clayton, Dubilier & Rice, Inc. (CD&R) and KKR, which are key players in funding and facilitating acquisitions.
Financials
- $2.7 billion – The transaction value for the acquisition of Kito Crosby by Columbus McKinnon.
- $2.6 billion – The debt financing component committed to fund the transaction.
- $0.8 billion – The value of perpetual convertible preferred equity investment from CD&R.
- $70 million – Expected annual net cost synergies resulting from the acquisition.
- 8x TTM Adjusted EBITDA – The transaction's valuation multiple post-synergies.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Columbus McKinnon Corporation | Buyer | Company | A leading designer, manufacturer, and marketer of intelligent motion solutions for material handling. |
| Kito Crosby Limited | Target Company | Company | A global leader in lifting solutions, known for its extensive product offerings in material handling. |
| Clayton, Dubilier & Rice, Inc. | Investor | Company | A private investment firm providing funding and strategic advice for the acquisition. |
| KKR & Co. Inc. | Selling Company | Company | A leading global investment firm that sold Kito Crosby, which it previously owned. |
| J.P. Morgan Securities LLC | Financial Advisor for Columbus McKinnon | Company | Providing financial advisory services to Columbus McKinnon for the acquisition. |
| DLA Piper LLP (US) | Legal Advisor for Columbus McKinnon | Company | Providing legal advisory services to Columbus McKinnon. |
| Hogan Lovells US LLP | Legal Advisor for Columbus McKinnon | Company | Providing legal advisory services to Columbus McKinnon. |
| Evercore and Goldman Sachs & Co. LLC | Financial Advisors for Kito Crosby and KKR | Company | Providing financial advisory services to Kito Crosby and KKR for the transaction. |
| Kirkland & Ellis LLC | Legal Advisor for Kito Crosby | Company | Providing legal advisory services to Kito Crosby. |
| Debevoise & Plimpton LLP | Legal Advisor for CD&R | Company | Providing legal advisory services to CD&R. |
| Guggenheim Securities LLC | Financial Advisor for CD&R | Company | Providing financial advisory services to CD&R. |