Columbus McKinnon Q3 2025 Earnings Report
Key Takeaways
Columbus McKinnon Corporation announced a definitive agreement to acquire Kito Crosby from KKR in an all-cash transaction valued at $2.7 billion. The combined company is expected to have annual revenue of $2.1 billion and Adjusted EBITDA of $486 million.
Business combination materially improves scale and product scope.
Transaction valued at approximately $2.7 billion at a ~8x TTM Adjusted EBITDA multiple post-synergies.
Expected to create ~$70 million in annual net cost synergies, improving Adjusted EBITDA Margins to greater than 23%.
Significant combined cashflow generation expected to enable de-leveraging to Net Leverage Ratio of approximately 3.0x within two years post-closing.
Columbus McKinnon
Columbus McKinnon
Forward Guidance
The combined company is expected to have a highly attractive financial profile, with meaningfully enhanced scale, increased margins and exceptional cash flow.
Positive Outlook
- Enhanced scale with pro-forma annual revenue of $2.1 billion.
- Increased margins with Adjusted EBITDA of $486 million.
- Exceptional cash flow characteristics.
- Expected to be accretive to the Company’s Adjusted Earnings Per Share in the first year after closing.
- De-leveraging in the near-term, reducing Net Leverage Ratio to approximately 3.0x within two years post-closing.
Challenges Ahead
- Risk that cost synergies and revenue synergies may not be fully realized or may take longer than anticipated.
- Disruption to the parties’ businesses as a result of the announcement and pendency of the transaction.
- Risk that the integration of Kito Crosby’s business and operations into Columbus McKinnon will be materially delayed or will be more costly or difficult than expected.
- Ability to obtain required governmental approvals of the transaction on the timeline expected.
- Reputational risk and the reaction of each company’s customers, suppliers, employees or other business partners to the transaction.