NEW YORK: Columbus McKinnon Corp has agreed to buy machinery maker Kito Crosby from Kohlberg Kravis Roberts & Co (KKR) in a transaction valued at US$2.7bil.
The all-cash deal is being financed by JPMorgan Chase & Co and an US$800mil perpetual convertible preferred equity investment from CD&R, according to a statement on Monday.
KKR was considering options for Kito Crosby including a sale.
Shares of Columbus McKinnon rose 3.6% to US$35.48 in New York trading on Monday, giving the Charlotte, North Carolina-based company a market value of about US$1bil.
Kito Crosby sells a range of products and services used to make lifting, rigging and transporting operations safer in industries ranging from oil and gas to food processing. Its brands include include Crosby, Harrington and Peerless.
Columbus McKinnon’s products include hoists, crane components, rigging tools and digital power and motion control systems.
“The combination will better position Columbus McKinnon to take advantage of industry trends such as re-shoring, infrastructure investment, modernisation and rising automation needs due to labour shortages,” chief executive officer David Wilson said in the statement.
On a pro-forma basis, the company is expected to have annual revenue of US$2.1bil and adjusted earnings before interest, taxes, depreciation and amortisation of US$486mil, according to Wilson.
American global private equity and investment company KKR originally invested in Crosby Group in 2013, buying the business from Melrose Industries along with Acco Material Handling Solutions in a US$1bil deal.
The investment firm then led a take-private of Kito in 2023 and merged the businesses to form Kito Crosby. — Bloomberg
