Columbus McKinnon Targets $1.225 Billion Debt Offering to Fund Kito Crosby Acquisition

Columbus McKinnon Corporation, a U.S. industrial equipment manufacturer, has announced plans to issue $1.225 billion in senior secured notes to help finance its pending acquisition of Kito Crosby Limited. The debt offering is also intended to refinance existing obligations and cover related fees, supporting the company’s broader growth and strategic objectives in the material handling sector.

Debt Offering Structure and Acquisition Financing

The proposed $1.225 billion notes, maturing in 2033, form a key component of the financing package for Columbus McKinnon’s acquisition of Kito Crosby. The offering will be conducted under standard market conditions and customary closing contingencies, integrating closely with the company’s overall capital structure for the transaction.

Proceeds from the notes, combined with funds from preferred equity sales and a new credit facility, are intended to fund the acquisition, repay Kito Crosby’s existing debt, and refinance Columbus McKinnon’s current senior secured credit lines. This layered financing approach is typical in large-scale industrial acquisitions, balancing leverage while preserving operational flexibility.

Initially, the notes will be unsecured and unguaranteed. Once the acquisition closes and the new credit facilities are in place, they will convert to first-priority secured obligations, backed by guarantees from certain U.S. subsidiaries. A mandatory redemption clause protects investors if the deal fails to close by August 10, 2026, or if the company decides to terminate the transaction, ensuring the notes remain tied to the intended acquisition.

Strategic Purpose and Market Rationale

The debt issuance directly supports Columbus McKinnon’s previously announced $2.7 billion all-cash deal for Kito Crosby, first disclosed in February 2025. The transaction is aimed at expanding Columbus McKinnon’s product portfolio, geographic reach, and overall scale in the lifting and material handling equipment market.

Kito Crosby, a major provider of lifting solutions and industrial equipment, would complement Columbus McKinnon’s existing offerings, creating a more diversified industrial platform. The acquisition has attracted significant debt and equity commitments, including contributions from private equity investors, reflecting market confidence in the strategic rationale.

By combining senior secured notes, preferred equity, and credit facilities, Columbus McKinnon can optimize its capital structure to address both short- and long-term funding needs. This financing mix allows the company to maintain liquidity, refinance current obligations, and advance the acquisition without placing undue pressure on its balance sheet. Industry analysts note that such structures are common in large acquisitions, balancing leverage management with investor protection.

Company Background and Transaction Context

Headquartered in Charlotte, North Carolina, Columbus McKinnon designs and manufactures intelligent motion solutions and material handling equipment, including hoists, cranes, and control systems, serving industrial customers worldwide. Kito Crosby Limited specializes in lifting and rigging equipment, supplying large industrial and construction clients globally.

The acquisition agreement, announced in early 2025, is subject to regulatory approvals and customary closing conditions. Alongside the senior secured notes, the transaction is supported by a combination of equity and credit commitments, ensuring the financial framework is in place to complete the deal.

Columbus McKinnon’s $1.225 billion senior secured note offering is central to financing the Kito Crosby acquisition, refinancing existing debt, and maintaining balance sheet flexibility. By linking the notes to the transaction with a mandatory redemption clause, the company aligns investor risk with deal completion while enabling strategic expansion in the industrial equipment market.