Columbus McKinnon Corporation (CMCO) has announced an agreement to acquire Kito Crosby for approximately $2.7 billion, subject to approval, expected to close later this year, subject to closing conditions.
David Wilson, president and CEO, CMCO said the acquisition strengthens the company’s position as a provider of motion solutions and praised its manageement team led by Robert Desel and Yoshio Kito. Wilson said the merger will address a growing demand in key sectors such as reshoring, infrastructure, and automation, all of which are increasingly important due to labor shortages and aging industrial facilities.
Kito Crosby operates numerous manufacturing plants worldwide and employs nearly 4,000 people. Under KKR’s ownership since 2013, Kito Crosby has significantly expanded its revenue, product offerings, and workforce, while enhancing safety and reducing injury rates. In 2024, the company generated $1.1 billion in revenue, leveraging an extensive global partner network. The merger will create a stronger company, with increased scale and greater presence in key markets, poised to offer advanced products and solutions to customers.
Robert Desel, CEO of Kito Crosby, shared excitement about the merger, noting the complementary strengths of both companies and the shared commitment to safety, quality, and customer satisfaction. He believes the combined entity will be better positioned to meet customer needs and create growth opportunities for employees.
KKR, which has partnered with Kito Crosby for over a decade, also praised the deal. Brandon Brahm, a Partner at KKR, highlighted how the company’s transformation under KKR ownership has positioned Kito Crosby for this next step, which will benefit both customers and employees.
Columbus McKinnon has also formed a strategic partnership with CD&R, a private investment firm with extensive experience in industrial sectors. CD&R’s investment in Columbus McKinnon is expected to support the acquisition and enhance the company’s growth potential. As part of the deal, Mike Lamach, Nate Sleeper, and Andrew Campelli are expected to join the Columbus McKinnon Board of Directors upon closing.
The merger is expected to significantly enhance the financial profile of the combined company, with projected annual revenue of $2.1 billion and Adjusted EBITDA of $486 million. The company expects to achieve $70 million in annual cost synergies by the third year. The strong cash flow generated from the merger will allow Columbus McKinnon to reduce its leverage ratio and return cash to shareholders while continuing to invest in growth and strategic acquisitions.
