Columbus McKinnon Announces $2.7 Billion Acquisition of Kito Crosby

Published 19 hours agoCMCO

Columbus McKinnon Announces $2.7 Billion Acquisition of Kito Crosby

Columbus McKinnon has announced a substantial acquisition of Kito Crosby, valued at approximately $2.7 billion. The deal, made public on February 10, 2025, is poised to close later this year, pending regulatory approvals and other standard closing conditions. Notably, as of May 30, there have been no reports of involvement from the U.S. Department of Justice regarding the scrutiny of this transaction.

The financial structure of the acquisition includes $2.6 billion in committed debt financing and an $800 million perpetual convertible preferred equity investment from Clayton, Dubilier & Rice. According to details shared by the companies, they expect to reap around $70 million in annual net cost synergies, which would improve Adjusted EBITDA margins to over 23%. Additionally, the combined entity's revenue is projected to exceed $2.1 billion on a pro-forma basis, as reported by Modern Distribution Management.

This acquisition is set to reinforce Columbus McKinnon's role as a comprehensive provider of intelligent motion solutions within the materials handling sector. By integrating Kito Crosby's portfolio and leveraging its global reach, Columbus McKinnon aims to expand its market influence and capitalize on new growth opportunities.

Share this article

Twitter Facebook LinkedIn

Recent Articles

Hims & Hers to Cut 4% of Workforce Following FDA's Wegovy Ban

Hims & Hers to Cut 4% of Workforce Following FDA's Wegovy Ban

5 minutes agoHIMS

Hims & Hers Health, a telehealth company, has announced plans to cut around 4% of its workforce, affecting 68 employees. This move comes in response to the U.S. Food and Drug Administration's decision to ban compounded versions of Novo Nordisk's GLP-1 weight-loss drug, Wegovy. The ban, effective from May 22, 2025, has already impacted the company's finances and triggered a significant share value drop. The impact of the FDA's ban is notable, as Hims & Hers previously offered more affordable compounded versions of Wegovy, which had been a considerable revenue driver. Reuters reported that the company's stock value has decreased by 14% since the announcement. Despite this setback, Hims & Hers saw a 111% increase in year-over-year revenue during the first quarter of 2025, with sales from GLP-1 weight-loss drugs generating $200 million of its $1.5 billion revenue in 2024. In response to the regulatory changes, Hims & Hers is seeking partnerships with Novo Nordisk to secure access to branded Wegovy for its patients. Simultaneously, the company aims to broaden its service offerings to new treatment areas including low testosterone, menopause, and sleep treatments. While implementing these strategic adjustments, Hims & Hers maintains plans to hire for roles crucial to its long-term growth, despite the current layoffs.

CPKC Secures New Labor Agreements with Teamsters Canada Rail Conference

CPKC Secures New Labor Agreements with Teamsters Canada Rail Conference

20 minutes agoCP

Canadian Pacific Kansas City (CPKC) has reached new collective bargaining agreements with two units from the Teamsters Canada Rail Conference. These agreements aim to enhance wages and benefits for thousands of employees across Canada. For the Maintenance of Way Employees Division (TCRC-MWED), a new four-year collective agreement has been signed, affecting approximately 2,300 engineering service employees. This development was praised by CPKC's CEO, Keith Creel, who noted the agreement brings long-term labor stability and ensures safe and efficient work operations. Meanwhile, a similar agreement has been reached with the Clerical and Intermodal Employees, represented by the United Steelworkers. This agreement impacts about 600 employees and guarantees higher wages and better benefits. These labor agreements underline CPKC's dedication to maintaining strong labor relations and stable operations. CEO Keith Creel commented on the importance of these agreements in supporting the North American economy and fostering positive employee relations across the company.

BYD's Bold Discounts in China Push Tesla into Challenging Territory

BYD's Bold Discounts in China Push Tesla into Challenging Territory

2 hours agoTSLA

BYD, a leading player in China's electric vehicle market, has launched an aggressive pricing strategy by slashing prices across 22 of its models with discounts reaching up to 34%. This significant move aims to ramp up competition and boost BYD's sales in a rapidly evolving sector, marked by intense rivalry among manufacturers. In light of this, the Chinese government has cautioned against ongoing price wars within the automotive industry. Officials have expressed concern that these competitive pricing strategies could undermine the industry's overall health and sustainability, urging carmakers to balance competitive pricing with long-term strategic goals, as reported by Reuters. These developments pose challenges for Tesla, whose sales have recently dipped in China due to increasing local competition and operational setbacks. Tesla's struggles are further illustrated by a reported 49% drop in its European sales in April 2025, influenced by growing political controversies surrounding CEO Elon Musk and temporary factory shutdowns. The evolving market dynamics, fueled by domestic powerhouses like BYD, continue reshaping the competitive landscape in China's EV industry.

AGCO's Stock Declines Amid Citi Downgrade and Lowered Guidance

AGCO's Stock Declines Amid Citi Downgrade and Lowered Guidance

2 hours agoAGCO

AGCO Corporation's stock has recently taken a hit following a downgrade by Citi, driven by concerns over the company's valuation. Citi cut the price target for AGCO from $108 to $102, although it maintained a 'Buy' rating. This revision was prompted by the company's disappointing second-quarter earnings and a larger-than-expected cut in its 2024 guidance. AGCO has revised its 2024 sales forecast down from approximately $13.5 billion to around $12.5 billion. It also reduced its adjusted operating margin guidance to 9.0% from 11.3%, and lowered its adjusted earnings per share (EPS) estimate from $12.00 to about $8.00. Morgan Stanley also weighed in, downgrading AGCO's stock from 'Equal-weight' to 'Underweight' and slashing the price target to $75 from $94, citing potential earnings risks and higher-than-peer inventory levels. As of the last trading day on May 31, AGCO's stock was priced at $97.98, marking a decline of $3.56 or 3.51% from the previous close, within a trading range of $97.55 to $100.61. These recent developments underscore the challenges AGCO is facing from reduced sales projections and tightening margins, leading to reevaluation by analysts like those at Citi, as reported by Investing.com.