Columbus McKinnon Secures $1.65 Billion Loan to Acquire Kito Crosby Limited
- Columbus McKinnon secures $1.65 billion in financing to facilitate the acquisition of Kito Crosby Limited.
- The loan aims to enhance Columbus McKinnon's portfolio and improve safety and quality in material handling.
- The acquisition supports Columbus McKinnon's vision for innovative solutions and operational efficiency in the industry.
Columbus McKinnon Strengthens Position in Material Handling with New Financing
Columbus McKinnon Corporation, a leading designer and manufacturer in the material handling industry, has recently announced the successful syndication and pricing of a substantial senior secured term loan B facility amounting to $1.65 billion. This pivotal financing initiative is part of the company's strategy to acquire Kito Crosby Limited, a move that underscores Columbus McKinnon's commitment to enhancing its portfolio in the commercial and industrial sectors. The term loan, priced at 99% of its face value with an interest rate set at SOFR plus 3.50%, is contingent upon customary closing conditions and is expected to close alongside the acquisition.
The net proceeds from this loan, supplemented by $900 million from a private offering of senior secured notes and additional funding from the sale of preferred shares, will be allocated to various critical financial objectives. These include financing the acquisition of Kito Crosby, repaying its existing debts, refinancing Columbus McKinnon's current obligations, and covering associated expenses. This strategic maneuver not only indicates the company’s growth ambitions but also highlights its focus on improving safety and quality within the industry through superior design and engineering capabilities. By expanding its offerings, Columbus McKinnon aims to solidify its market position and respond effectively to evolving customer demands.
The acquisition of Kito Crosby aligns with Columbus McKinnon's vision of providing innovative solutions in material handling, which encompasses a diverse range of products such as hoists, crane components, conveyor systems, rigging tools, and advanced digital power and motion control systems. The integration of Kito Crosby's expertise is anticipated to enhance Columbus McKinnon's ability to deliver efficient and ergonomic solutions to a growing client base. As the company advances its operations, it remains dedicated to adhering to regulatory guidelines, ensuring compliance while pursuing its growth and innovation objectives within the material handling sector.
In addition to the financing announcement, Columbus McKinnon continues to position itself as a leader in the material handling industry. The company’s focus on safety and quality resonates with market demands for intelligent motion solutions that prioritize operational efficiency. As the industry evolves, Columbus McKinnon’s commitment to integrating cutting-edge technology and innovative design will be crucial in maintaining its competitive edge.
As Columbus McKinnon embarks on this new chapter with the Kito Crosby acquisition, it reinforces its strategic vision to enhance its portfolio and deliver superior solutions to its customers. The successful financing initiative not only aids in this acquisition but also signals the company’s robust growth trajectory and its dedication to advancing material handling technology.