Steve Ferazani

James Kirby

Jon Tanwanteng

Matt Summerville

Walter Liptak

Canyon Hayes

Charlie Strauzer

Jonathan Tanwanteng

- Columbus McKinnon (CMCO) is acquiring **Kito Crosby**, a leader in lifting and procurement products, with the deal expected to close by the **end of the year**.  **[1005229_2146123_2]** **[1005229_2146123_6]**  This acquisition is projected to yield **$70 million in net cost synergies** and significantly enhance CMCO's scale and market position.  **[1005229_2146123_3]** **[1005229_2146123_2]** 
- The combined entity is anticipated to generate approximately **$200 million in free cash flow** annually.  **[1005229_2146123_7]**  Leverage is expected to be around **five times at close**, with a target to reduce it to approximately **three times within a couple of years**.  **[1005229_2146123_7]** 
- CMCO reported a **record backlog of $360 million** at the end of the last quarter, marking a **23% year-over-year increase** driven by its project business.  **[1005229_2146123_4]** 
- The company expects to fully mitigate tariff impacts in the second half of the current fiscal year, aiming for **margin neutrality** in the next fiscal year through price increases and supply chain optimization.  **[1005229_2146123_5]** 
- CMCO is positioned to capitalize on industry megatrends including **reshoring, scarcity of labor, and global infrastructure investments**, which are expected to drive future demand.  **[1005229_2146123_2]** **[1005229_2146123_6]**

Columbus McKinnon discusses Kito Crosby acquisition, financial outlook, and market trends

- **Columbus McKinnon (CMCO)** is a **global leader in intelligent motion solutions** for material handling, operating in an approximate **$20 billion Total Addressable Market**.  **[1005229_2146109:6]** 
- The company is strategically expanding, notably through the **Kito Crosby acquisition**, which reported **$1.1 billion in 2024 Revenue** and is expected to enhance CMCO's scale and geographic reach.  **[1005229_2146109:8]** **[1005229_2146109:9]** 
- CMCO's recent financial performance is summarized below:

| Metric | FY24 | FY25 | Q2 FY26 |
|---|---|---|---|
| Net Sales ($USD Thousands) | **$1,013,540**  **[1005229_2146109:11]**  | **$963,027**  **[1005229_2146109:11]**  | **$959,221**  **[1005229_2146109:11]**  |
| Adjusted EBITDA Margin (%) | **16.4%**  **[1005229_2146109:11]**  | **15.6%**  **[1005229_2146109:11]**  | **15.0%**  **[1005229_2146109:11]**  |

- CMCO has a demonstrated history of **de-leveraging post-acquisitions**, with a **Net Leverage Ratio of 2.4x** as of **Q4 FY24**.  **[1005229_2146109:9]** **[1005229_2146109:15]**

Columbus McKinnon Highlights Strategic Growth and Financial Performance

COLUMBUS MCKINNON (CMCO)