Columbus McKinnon (CMCO) Corporate presentation summary

Executive summary

• Entered a definitive agreement to acquire Kito Crosby Limited for $2.7B, funded by $2,550M in new debt and $800M in preferred equity from CD&R.

• Pending divestiture of U.S. power chain hoist and chain operations expected to generate $210M in gross proceeds, with $160M net used to pay down debt.

• Pro forma combined company generated ~$2.0B in net sales and a 22% Adjusted EBITDA margin for TTM ended 9/30/2025.

• Strategic rationale includes increased scale, leadership in lifting, margin expansion, and significant synergy opportunities (~$70M annual net run rate cost synergies).

• CD&R will own approximately 42.5% of the combined company post-transaction.

Company and transaction overview

• Columbus McKinnon is a global leader in intelligent motion solutions, with a diversified product mix across lifting, automation, precision conveyance, and linear motion.

• Kito Crosby is a pioneer in lifting and securement consumables, with a strong APAC presence and a complementary product portfolio.

• The combined company will have a broad geographic footprint, with enhanced presence in North America, EMEA, and APAC.

• The acquisition is expected to double net sales and create a top-tier margin profile among industrial peers.

Financial structure and policy

• Transaction funded by a $1,325M Term Loan B, $1,225M Senior Secured Debt, $800M PIPE preferred equity, and a $500M revolving credit facility.

• Targeting a long-term net leverage ratio of ~2.0x, with near-term focus on de-leveraging using free cash flow.

• Pro forma for the transaction and divestiture, net debt is $2,315M and net leverage is 5.4x, with a plan to reduce below 4.0x by FY28.

• CapEx-light business model, with historical CapEx averaging ~2.1% of net sales and flexibility to reduce further.