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Columbus McKinnon to Combine with Kito Crosby Delivering Compelling Value Creation

1. Columbus McKinnon to acquire Kito Crosby for $2.7 billion, enhancing product offerings. 2. The deal is expected to generate $70 million in annual synergies, increasing profitability.

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FAQ

Why Very Bullish?

The acquisition significantly boosts CMCO's scale and profitability, positively influencing investor sentiment.

How important is it?

This major acquisition is strategically aligned with CMCO's growth plan, integral for future revenue streams.

Why Long Term?

Expected synergies and improved margins will enhance financial stability over time, akin to past acquisitions enhancing growth trajectories.

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KITOKKR
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.

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