Columbus McKinnon to combine with Kito Crosby

Columbus McKinnon (CMCO) a leading designer, manufacturer and marketer of intelligent motion solutions for material handling, has announced a definitive agreement under which Columbus McKinnon will acquire Kito Crosby Ltd. CMCO expects the deal to close later this year, subject to regulatory approvals and satisfactory completion of customary closing conditions.

David Wilson, president and CEO of Columbus McKinnon said, “This is an important next step in further strengthening Columbus McKinnon’s position as a scaled, holistic provider of intelligent motion solutions in materials handling. We’ve long had a great respect for Kito Crosby’s strong portfolio of offerings. The business that the Kito Crosby management team, led by Robert Desel and Yoshio Kito have built is exceptional, and we look forward to welcoming them to the Columbus McKinnon team.

“Through this strategic combination, we’re creating a company that is extremely well-positioned to deliver real-world solutions for customers, with favourable tailwinds from megatrends, including reshoring, infrastructure investment, modernization of aging industrial facilities, and rising automation needs due to labour shortages. This combination also unites two highly talented teams with deep technical expertise, customer-centric cultures and a shared vision for operational excellence focused on safety, productivity and uptime on behalf of our customer,” David said.

Kito Crosby is a global leader in lifting solutions with multiple manufacturing assembly plants and nearly 4000 employees serving over 50 countries. KKR has owned Kito Crosby since 2013 and in the time had delivered significant value creation, more than doubling revenue, quadrupling the number of employees while reducing injury rates and expanding into new product categories, end markets and geographies.

In 2024, Kito Crosby generated $1.1 billion in revenue through its extensive global channel partner network. Together the combined company will be a leader in material handling solutions with greater scale and a strong presence in vertical markets and target geographies. It is anticipated that it will deliver exceptional innovation and products to customers.

Robert Desel, chief executive officer of Kito Crosby said, “We have long respected Columbus McKinnon. Our shared values of safety, quality, and a focus on our employees and customers will create value for all stakeholders.

“This deal brings together highly complementary, industry-leading brands, products and competencies with strong recurring sales dynamics. With the benefit of additional scale, and shared best practices and technology, we will be better positioned to meet our customers’ needs than ever before, simultaneously creating new opportunities for growth and development for our team members. We could not be more pleased to see these two great teams coming together.”

Brandon Brahm, Partner at KKR said, “Today’s announcement is a testament to the value we and the Kito Crosby team have created by transforming the business through organic initiatives, expanding global reach and pursuing strategic and accretive acquisitions. Kito Crosby is now better able to serve its customers with safety critical equipment than ever before, and the combination with Columbus McKinnon will further position the combined business to best serve all stakeholders. It has been an honour to closely partner with Robert, Yoshio and the whole Kito Crosby team and we believe the company is well positioned for this new chapter.”

As part of the transaction, Columbus McKinnon has partnered with CD&R, a leading private investment firm with significant experience in delivering growth and operational improvement in industrial and manufacturing companies. As a result of CD&R’s investment in Columbus McKinnon it is expected that Mike Lamach, Nate Sleeper and Andrew Campelli from CD&R will join the company’s board of directors upon closing.

“We are excited to partner with Columbus McKinnon, their strong management team and Board, to support this highly strategic acquisition and the Company’s long-term opportunities,” said Michael Lamach, operating advisor to CD&R funds and former executive chair and CEO of Trane Technologies. “We look forward to working closely with Columbus McKinnon to realize the full potential of this combination and set the stage for the Company’s next phase of growth.”

Jerry Colella, chair of the board for Columbus McKinnon said, “We are excited about this business combination and look forward to welcoming Mike, Nate and Andrew to the Board. CD&R will bring deep industry knowledge, a strong results orientation and financial expertise to our already strong board of directors.”