Columbus McKinnon Secures $900 Million for Kito Crosby Acquisition Financing

Columbus McKinnon Expands Its Portfolio with Strategic Acquisition Financing

Columbus McKinnon Corporation, a leader in intelligent motion solutions for material handling, embarks on a significant growth trajectory with its recent announcement regarding the acquisition of Kito Crosby Limited. The company successfully prices an offering of $900 million in senior secured notes due in 2033, aimed at financing this strategic acquisition. Initially set at $1.225 billion, the offering reflects a recalibrated approach to fundraising that aligns with the company’s financial strategy and market conditions. The transaction is projected to close on January 30, 2026, pending customary closing conditions, and positions Columbus McKinnon to enhance its operational capabilities and market presence.

The funds raised through this offering will not only finance the acquisition but also serve multiple purposes, including the repayment of Kito Crosby's existing debt and refinancing Columbus McKinnon's current obligations. Notably, the offering is structured to provide flexibility, as it is not directly dependent on the acquisition's completion. However, the notes will require mandatory redemption if the acquisition does not finalize by August 10, 2026. This strategic maneuver underscores Columbus McKinnon's confidence in the acquisition while ensuring a robust financial framework for operational continuity.

Columbus McKinnon’s focus on enhancing its product offerings through this acquisition aligns with its commitment to safety and quality in commercial and industrial applications. The company is recognized for its diverse range of products, including hoists, crane components, and digital motion control systems. By integrating Kito Crosby's expertise and product line, Columbus McKinnon aims to fortify its market position and continue delivering innovative solutions that meet the growing demands of the material handling sector.

In addition to the senior secured notes, Columbus McKinnon announces a new senior secured term loan B facility amounting to $1.65 billion, set to close alongside the acquisition. This facility, priced at 99% of its face value with a competitive interest rate, complements the overall financing strategy for the acquisition. Furthermore, the company is working with CD&R XII Keystone Holdings, L.P. on a separate equity transaction involving Series A Cumulative Convertible Participating Preferred Shares, reflecting a comprehensive approach to securing the necessary capital for this pivotal growth initiative.

As Columbus McKinnon moves forward with its acquisition strategy, the company remains focused on its core mission of providing innovative and efficient material handling solutions. The financing activities not only demonstrate the company's commitment to growth but also highlight its proactive stance in navigating the complexities of the financial landscape while adhering to regulatory guidelines.