Transformational Acquisition
Columbus McKinnon has entered into an agreement to combine with Kito Crosby, creating a scaled intelligent motion platform with over $2 billion in sales and a pro forma adjusted EBITDA margin of 23%, with expected $70 million of net cost synergies by year 3.
Strategic Growth Opportunities
The combination positions Columbus McKinnon to benefit from global industry megatrends such as nearshoring, labor scarcity, and infrastructure investment, with a broader portfolio and geographic reach.
Strong Free Cash Flow and Debt Reduction
The combined entity is expected to generate significant free cash flow, with plans to reduce net leverage ratio to approximately 3 times by the end of year 2 after the deal closes.
Healthy Project Funnel and Quotation Activity
Project-related backlog was up 3%, driven by strength in precision conveyance and linear motion, with quotation activity increasing to near record levels.