Columbus McKinnon Corporation announced a definitive agreement to acquire Kito Crosby Limited from funds managed by KKR in an all-cash transaction valued at $2.7 billion. This acquisition is expected to close later this calendar year, pending regulatory approvals and customary closing conditions.
The combination is projected to create a scaled intelligent motion platform with over $2 billion in pro forma annual revenue and a pro forma adjusted EBITDA margin of 23%. Kito Crosby generated $1.1 billion in revenue in 2024, and the combined entity is expected to accelerate the achievement of Columbus McKinnon's fiscal year 2027 financial targets.
Columbus McKinnon anticipates achieving $70 million in annual net cost synergies by the end of year three post-closing. The transaction is expected to be accretive to the company's Adjusted Earnings Per Share in the first year after closing. The company plans to fund the acquisition through $3.050 billion in committed debt financing and an $0.8 billion perpetual convertible preferred equity investment from CD&R, targeting a reduction in net leverage to approximately 3.0x within two years post-closing.
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