CHARLOTTE, N.C., Jan. 30, 2026 /PRNewswire/ -- Columbus McKinnon Corporation (Nasdaq: CMCO) ("Columbus McKinnon" or the "Company"), a leading designer, manufacturer and marketer of intelligent motion solutions for material handling, announced today it has completed its offering of $900.0 million in aggregate principal amount of 7.125% senior secured notes due 2033 (the "Notes") in connection with the Company's previously announced pending acquisition (the "Acquisition") of Kito Crosby Limited ("Kito Crosby ...

Core Viewpoint - Columbus McKinnon Corporation will release its third quarter fiscal 2026 results on February 9, 2026, after market close [1] Group 1: Financial Results Announcement - The company will host a conference call on February 9, 2026, at 5:00 p.m. Eastern Time to discuss financial and operational results [2] - The conference call will be available via live webcast on the company's Investor Relations webpage, with a replay accessible until February 16, 2026 [2] Group 2: Company Overview - Columbus McKinnon is a leading designer, manufacturer, and marketer of intelligent motion solutions for material handling [3] - The company focuses on commercial and industrial applications, providing safety and quality through superior design and engineering [3] - Key products include hoists, crane components, precision conveyor systems, rigging tools, light rail workstations, and digital power and motion control systems [3]

Core Viewpoint - Columbus McKinnon Corporation has successfully syndicated and priced a new $1,650.0 million senior secured term loan B due 2033 to finance its acquisition of Kito Crosby Limited [1][2] Group 1: Financing Details - The new term loan will be issued at a price equal to 99.0% of its face value and will bear interest at SOFR plus 3.50% [1] - The net proceeds from the term loan, along with other financing sources including a private offering of $900.0 million in senior secured notes and a new revolving facility of $500.0 million, will be used to finance the acquisition, refinance existing debt, and cover related fees and expenses [2] Group 2: Company Overview - Columbus McKinnon is a leading designer, manufacturer, and marketer of intelligent motion solutions, focusing on commercial and industrial applications [4] - The company's key products include hoists, crane components, precision conveyor systems, rigging tools, light rail workstations, and digital power and motion control systems [4]

Core Viewpoint - Columbus McKinnon Corporation has priced its offering of $900 million in senior secured notes to finance the acquisition of Kito Crosby Limited, with the offering size reduced from $1.225 billion to $900 million [1][2]. Group 1: Offering Details - The offering consists of 7.125% senior secured notes due in 2033, expected to close on January 30, 2026, pending customary closing conditions [1]. - The net proceeds from the notes will be used to finance the acquisition, repay Kito Crosby's existing debt, refinance Columbus McKinnon's existing debt, and cover related fees and expenses [2]. - The notes are not contingent on the acquisition's completion and will be subject to mandatory redemption if the acquisition does not close by August 10, 2026, or if the company determines it will not occur by that date [3]. Group 2: Security and Guarantees - Initially, the notes will be unsecured and not guaranteed by any subsidiary. After the acquisition, they will be secured by a first priority interest in substantially all assets of the company and its U.S. subsidiaries [4]. - The notes will be unconditionally guaranteed on a senior secured basis by the company's U.S. subsidiaries that will guarantee the new credit agreement related to the acquisition [4]. Group 3: Regulatory Information - The notes and related guarantees will not be registered under the Securities Act of 1933 and will be offered only to qualified institutional buyers and certain accredited investors [5].

Core Viewpoint - Columbus McKinnon Corporation is offering $1,225.0 million in senior secured notes to finance the acquisition of Kito Crosby Limited, with the offering subject to market conditions [1][2]. Financing Details - The net proceeds from the notes offering will be used to finance the acquisition, repay Kito Crosby's existing debt, refinance Columbus McKinnon's existing debt, and cover related fees and expenses [2]. - The offering is not contingent upon the completion of the acquisition, but the notes will be subject to mandatory redemption if the acquisition does not close by August 10, 2026, or if the company determines it will not occur by that date [3]. Security and Guarantees - Initially, the notes will be unsecured and not guaranteed by any subsidiary. After the acquisition, they will be secured by a first priority interest in the company's assets and guaranteed by its U.S. subsidiaries [4]. Regulatory Information - The notes and related guarantees will not be registered under the Securities Act of 1933 and will be offered only to qualified institutional buyers and certain accredited investors [5]. Company Overview - Columbus McKinnon is a leading designer, manufacturer, and marketer of intelligent motion solutions, focusing on commercial and industrial applications that require safety and quality [7].

Financial Performance - Net sales for the three months ended September 30, 2025, increased to $278.7 million, up 6.7% from $261.7 million in the same period of 2024[8] - Gross profit for the nine months ended September 30, 2025, was $321.1 million, slightly up from $319.9 million in 2024, indicating a stable gross margin[8] - Operating income for the three months ended September 30, 2025, was $38.5 million, a decrease of 4.9% compared to $40.5 million in 2024[8] - Net income attributable to shareholders for the three months ended September 30, 2025, was $14.8 million, significantly higher than $4.8 million in the same period of 2024, reflecting a 208.3% increase[8] Assets and Liabilities - Total assets as of September 30, 2025, amounted to $1,471.2 million, an increase from $1,420.6 million as of December 31, 2024[5] - Current liabilities increased slightly to $233.3 million as of September 30, 2025, compared to $230.5 million at the end of 2024[5] - Cash and cash equivalents decreased to $177.3 million from $178.5 million at the end of 2024, indicating a slight reduction in liquidity[5] - Total equity increased to $149.4 million as of September 30, 2025, compared to $94.4 million at the end of 2024, reflecting improved financial health[5] Cash Flow and Expenses - The company reported a net cash provided by operating activities of $18.1 million for the nine months ended September 30, 2025, down from $39.0 million in 2024[10] - The company incurred interest expense of $50.9 million for the nine months ended September 30, 2025, down from $75.2 million in the same period of 2024, indicating reduced borrowing costs[8] Equity and Deficits - The total accumulated deficit as of September 30, 2024, was $677.2 million, reflecting a decrease from $694.8 million as of March 31, 2024[14] - The company’s total equity as of September 30, 2024, was $128.8 million, an increase from $100.7 million at the end of June 2024[14] Acquisitions and Market Expansion - The company has expanded its global operations through strategic acquisitions, enhancing its portfolio with innovative solutions for lifting and rigging[16] - Recent acquisitions include Gunnebo Industries and Verton Technologies, which introduced advanced products that enhance safety and efficiency in lifting operations[16] - The company serves a wide array of end markets including oil & gas, industrial, construction, infrastructure, and mining, with a geographical reach spanning North America, Europe, the Middle East, Asia, and Latin America[17] Revenue Recognition and Credit Management - The company recognizes revenue under ASC 606, with the majority generated from the sale of standard products, recognized at the point of shipment or delivery[26][27] - The company’s allowance for current expected credit losses has historically not been significant, indicating effective credit risk management[34] Assets and Liabilities Management - The Company utilizes the "last-in, first-out" (LIFO) method for inventory accounting at certain U.S. locations, while the "first-in, first-out" (FIFO) method is used for all other locations[36] - The estimated useful lives for property, plant, and equipment range from 3 to 50 years, depending on the asset class[38] - The Company recognizes lease liabilities at the present value of remaining lease payments for leases with terms greater than twelve months[41] - Goodwill and other indefinite-lived intangible assets are tested annually for impairment, with no impairment losses recognized as of the latest reporting dates[46] - Acquired customer-relationship and patents intangible assets are amortized over useful lives ranging from 7 to 12 years[47] Unrealized Losses and Fair Value - The Company reported an unrealized loss of $0.2 million for the three months ended September 30, 2025, compared to $6.9 million for the same period in 2024, indicating a significant reduction in losses[57] - The fair value of cash and cash equivalents, accounts receivable, and accounts payable approximated their carrying amounts as of September 30, 2025, and December 31, 2024[67] Environmental and Tax Liabilities - The Company recognizes liabilities for environmental remediation costs when the loss is probable and can be reasonably estimated, reflecting a proactive approach to environmental obligations[49] - The Company assesses deferred tax assets and liabilities based on enacted tax laws and rates applicable to future taxable income, ensuring compliance with tax regulations[61] Debt and Financing - As of September 30, 2025, the Company's term-loan borrowings had a carrying amount of $982.6 million, which approximates its fair value[68] - The Company's total goodwill carrying value is approximately $133.2 million as of September 30, 2025, down from $140.4 million as of December 31, 2024[79] - Long-term debt at September 30, 2025, consisted of a First Lien Term Loan of $982.6 million with an interest rate of 7.8%[86] - The total debt, net of unamortized discounts and issuance costs, was $970.1 million as of September 30, 2025[86] - The Company completed a Joinder Agreement on November 2, 2023, allowing for additional borrowings of $205.0 million, which were used to retire the Second Lien Term Loan[83] - The Company has available borrowing capacity under the revolving credit facility of $117.6 million as of September 30, 2025[85] Accounting Standards and Tax Positions - The Company is evaluating the impact of new accounting standards, including ASU 2024-03, which requires additional disclosures about income statement expenses, effective after December 15, 2026[73] - The cumulative impairment losses of trademarks were $115.0 million as of September 30, 2025[80] - The First Lien Term Loan amortizes in equal quarterly installments of 0.25% of the first lien balance, with the remaining balance due in August 2029[88] - As of September 30, 2025, total accounts receivable amounted to $191.0 million, a slight decrease from $192.9 million as of December 31, 2024[94] - Total inventories increased to $366.6 million as of September 30, 2025, compared to $322.6 million as of December 31, 2024, reflecting a growth of approximately 13.6%[95] - Property, plant, and equipment, net, was reported at $270.7 million as of September 30, 2025, down from $276.0 million as of December 31, 2024[95] - The total accrued expenses and other current liabilities rose to $123.2 million as of September 30, 2025, compared to $107.5 million as of December 31, 2024, indicating an increase of about 14.0%[97] - The estimated asbestos liability was $15.1 million as of September 30, 2025, slightly down from $15.5 million as of December 31, 2024[101] - The company recorded a net periodic pension benefit of $0.5 million for the three months ended September 30, 2025, consistent with the same period in 2024[108] - The company has a deferred financing cost that is being amortized to interest expense over the term of the associated credit facilities[93] - The interest rate margin applicable to RCF borrowings ranges from 0.25% to 0.50%, based on the Leverage Ratio[92] - The company has recognized a liability of approximately $4.2 million for additional remediation responsibilities over the next five years related to environmental obligations[100] - The total other non-current assets increased to $68.6 million as of September 30, 2025, from $64.0 million as of December 31, 2024[97] Tax Expenses and Benefits - The tax expense for the nine months ended September 30, 2025, is $18.8 million with an effective tax rate of 32.4%[9] - The unrecognized tax benefit as of September 30, 2025, is $2.1 million, which could affect the effective tax rate if recognized[116] - The Company has a deferred tax liability of $8.8 million associated with foreign withholding taxes as of September 30, 2025[119] - The Company has outstanding standby letters of credit and guarantees totaling $2.4 million as of September 30, 2025[125] - The Company signed a definitive agreement to acquire Kito Crosby Ltd for $2.7 billion, expected to close in 2025[126] - Unpaid advisory fees to KKR amount to $0.3 million and $0.4 million as of September 30, 2025, and December 31, 2024, respectively[122] - The Company has a note receivable from Ascend Investments S.a.r.l. of $1.1 million as of September 30, 2025[123] - The effective tax rate for the three months ended September 30, 2025, is 17.0%[9] - The Company believes it is adequately reserved for its uncertain tax positions as of September 30, 2025[118] - The enactment of the "One Big Beautiful Bill Act" is not expected to materially impact the Company's estimated annual effective tax rate in 2025[121]

Core Viewpoint - Columbus McKinnon Corporation has announced preliminary unaudited financial results for its third quarter ending December 31, 2025, indicating expected growth in net sales and adjusted EBITDA compared to previous periods [1][2]. Financial Performance - The company anticipates net sales between $250 million to $260 million for Q3 2025 and between $747 million to $757 million for the nine months ended December 31, 2025 [2]. - Adjusted EBITDA is expected to range from $38 million to $40 million for Q3 2025 and between $115 million to $117 million for the nine months ended December 31, 2025 [2]. - Adjusted EPS is projected to be between $0.58 to $0.63 for Q3 2025 and between $1.70 to $1.75 for the nine months ended December 31, 2025 [3]. Orders and Backlog - The company estimates that orders received during Q3 2025 will be between $245 million and $250 million, a decrease from $253.7 million in Q2 2026 [3]. - Backlog is expected to be between $335 million and $345 million as of December 31, 2025, reflecting a 3% decrease from $351.6 million in Q2 2026 but a 5% increase from $322.5 million at the end of fiscal 2025 [4]. Acquisition and Divestiture - The preliminary financial results do not account for the pending acquisition of Kito Crosby Limited or the divestiture of its U.S. power chain hoist and chain manufacturing operations [5]. Adjusted EBITDA Definition Update - The company has revised its definition of Adjusted EBITDA to include stock-based compensation expense, aiming to provide investors with a clearer understanding of underlying performance [5].

Core Viewpoint - Columbus McKinnon Corporation has announced a definitive agreement to sell its U.S. power chain hoist and chain manufacturing operations for $210 million, with a potential earn-out of $25 million, to Pacific Avenue Capital Partners, aiming to simplify its portfolio and reduce debt while progressing towards the acquisition of Kito Crosby Limited [1][2][3]. Divestiture Details - The divestiture involves operations based in Damascus, Virginia, and Lexington, Tennessee, and is expected to close in the first quarter of calendar year 2026 [1]. - Cash proceeds of approximately $160 million are anticipated to be used for debt reduction related to the acquisition of Kito Crosby, aligning with the company's capital allocation priority [2]. Strategic Rationale - The divestiture is seen as a means to simplify the company's portfolio and reduce product redundancies with Kito Crosby, enhancing the combined business's customer value proposition [3][4]. - The acquisition of Kito Crosby is expected to create significant scale and capabilities, improving service across diverse markets [4][5]. Financial Outlook - The company expects to achieve $70 million in annual net run rate cost synergies post-acquisition, contributing to a projected Adjusted EBITDA margin in the mid-20% range [5][9]. - Following the acquisition and divestiture, the company anticipates combined net sales of approximately $2.00 billion to $2.05 billion and Adjusted EBITDA between $440 million and $460 million for fiscal 2026 [9]. Regulatory Process - Columbus McKinnon is actively working with the Antitrust Division of the U.S. Department of Justice to facilitate the acquisition's closure within the expected timeline [4][6]. Future Capital Allocation - The primary focus for capital allocation post-transaction will be on debt reduction, with expectations to achieve a Net Leverage Ratio below 4.0x by the end of fiscal 2028 [8][9].

Group 1 - Heartland Advisors released its "Heartland Value Fund" fourth-quarter 2025 investor letter, noting that the Russell 2000® Value Index generated a return of 3.26%, outperforming the S&P 500's 2.66% gains [1] - Small stocks nearly caught up to large caps in 2025, marking their best performance since the pandemic, driven by an increase in small-cap stock earnings and compelling valuations [1] - The Heartland Value Fund gained 2.61% in the quarter, underperforming the Russell 2000® Value Index due to stock selection issues, particularly in the healthcare sector [1] Group 2 - Columbus McKinnon Corporation (NASDAQ:CMCO) was highlighted in the investor letter, with its stock closing at $19.68 per share on January 12, 2026, reflecting an 11.88% one-month return but a 44.50% loss over the last 52 weeks [2] - The company has a market capitalization of $565.372 million [2] - Heartland Value Fund increased its position in Columbus McKinnon Corporation, which designs and manufactures materials handling products for various industrial applications [3] - Columbus McKinnon reported slower-than-expected Q3 results due to U.S. policy uncertainty, which typically would have led to a mid to high single-digit selloff [3] - The stock plummeted over 40% following the announcement of a $2.7 billion acquisition of competitor Kito Crosby, raising concerns about execution and increased leverage [3]

Core Insights - Columbus McKinnon (CMCO) shares experienced a significant decline in the spring following the announcement of a complex acquisition deal for Kito Crosby in February, which involved substantial debt and ambitious synergy projections [1] Group 1: Company Overview - Columbus McKinnon is involved in a complicated acquisition deal that has raised concerns among analysts due to its high debt levels and aggressive synergy estimates [1] Group 2: Market Context - The investment landscape includes a focus on major corporate events such as earnings reports, mergers and acquisitions, and IPOs, with an emphasis on identifying actionable investment opportunities [2]