Columbus McKinnon Advances Kito Crosby Acquisition, Sells Assets

Columbus McKinnon Corporation has confirmed progress in its acquisition of Kito Crosby Limited, alongside a significant divestiture of certain assets. The company announced on January 14, 2026, that it entered into a definitive agreement to sell its U.S. power chain hoist and chain manufacturing operations for approximately $210 million, with potential additional earnings of $25 million.

The divestiture involves operations based in Damascus, Virginia and Lexington, Tennessee. Columbus McKinnon aims to streamline its product portfolio by reducing redundancies with Kito Crosby, thereby simplifying operations and enhancing overall customer value.

As part of this strategic move, Columbus McKinnon is working closely with the Antitrust Division of the U.S. Department of Justice to finalize the acquisition of Kito Crosby by the end of the first quarter of calendar year 2026. The company continues to anticipate achieving $70 million in annual net run rate cost synergies from the integration, enhancing its scale and capabilities across diverse markets.

Following the divestiture, Columbus McKinnon expects to allocate around $160 million from the cash proceeds to reduce debt incurred for the Kito Crosby acquisition, reinforcing its capital allocation strategy focused on debt reduction and deleveraging.

David Wilson, President and CEO of Columbus McKinnon, stated, “We believe that the divestiture simplifies the portfolio, reduces debt, and will expedite progress towards the closing of the acquisition. The combined business with Kito Crosby will enable an even more compelling customer value proposition over time.” He emphasized the strength of bringing together two industry-leading teams, which is expected to drive value for stakeholders.

The acquisition, originally announced on February 10, 2025, is projected to double the size of Columbus McKinnon, creating a more extensive global reach and an expanded product portfolio. The anticipated benefits include an attractive financial profile, with an Adjusted EBITDA margin in the mid-20% range on a synergy-adjusted basis.

In terms of financial outlook, Columbus McKinnon expects that, assuming both transactions close on April 1, 2025, pro forma net sales for fiscal 2026 could range from approximately $2.00 billion to $2.05 billion, with Adjusted EBITDA expected to fall between $440 million and $460 million.

The company acknowledges that the exact timing of both transactions remains uncertain, which may impact its fiscal fourth quarter results. Columbus McKinnon anticipates that the acquisition will be dilutive to GAAP earnings per share for the fourth quarter and the full fiscal year of 2026, primarily due to transaction expenses and early integration costs.

In the wake of these developments, Columbus McKinnon is set to prioritize debt reduction post-transaction. The company aims to achieve a Net Leverage Ratio below 4.0x by the end of fiscal 2028, further establishing financial stability.

Columbus McKinnon has engaged several advisors for these transactions. Guggenheim Securities LLC serves as the financial advisor for Columbus McKinnon, while DLA Piper LLP (U.S.), Skadden, Arps, Slate, Meagher & Flom LLP, and Hogan Lovells US LLP are providing legal advice. Pacific Avenue Capital Partners has retained O’Melveny & Myers LLP as its legal advisor.

As a leading designer and manufacturer of intelligent motion solutions, Columbus McKinnon focuses on enhancing material handling efficiency and safety across various industrial applications. With a commitment to innovation, the company is dedicated to improving lives through superior design and engineering.

For further information, Columbus McKinnon encourages stakeholders to visit their official website at www.cmco.com.