The Crosby Group, a leading provider of lifting and rigging solutions, and KITO CORPORATION, a leading manufacturer of material handling equipment with 90 years of experience in the development and production of hoists and cranes, today announced the completion of their business combination.
[Photo above: Robert Desel (left), CEO of Kito Crosby; and Yoshio Kito, Chairman of the Board of Kito Crosby.]
Today’s announcement follows the settlement of The Crosby Group’s cash tender offer for all outstanding shares of KITO CORPORATION for JPY 2,725 per share and the completion of the related squeeze-out process and de-listing of KITO CORPORATION from the Tokyo Stock Exchange.
This combination, under the name Kito Crosby, brings together two industry-leading companies with complementary geographic footprints and product portfolios to better serve customers, team members, and their global communities. The combined company will invest in its people, products, and facilities to advance innovative solutions for customers, who will benefit from expanded service, support, and training.
Under the new entity, Kito Crosby team members will be participants in the employee ownership program.
Robert Desel, CEO of Kito Crosby, said: “I am thrilled to announce we have completed the business combination of The Crosby Group and KITO CORPORATION to form Kito Crosby, a global provider of comprehensive lifting solutions. Together, our highly complementary product portfolios and mutual commitments to safety, reliability, and innovation will create exceptional value for our customers and other stakeholders. I am honored to be leading this organization and its 4,000 team members around the world to bring together two amazing businesses with rich traditions and histories.
“I am very excited to announce that under the combined company we will be extending our expanded employee ownership program to Kito Crosby team members. We firmly believe that everyone contributes to the success of the company and should benefit from their efforts,” Mr. Desel concluded.
Yoshio Kito, Chairman of the Board of Kito Crosby said: “This combination represents significant value creation for our customers, employees, shareholders, and communities. We are excited to continue growing as a combined business and to develop incremental opportunities for our existing and new customers across the world with expanded product offerings and solutions, while maintaining the same support and commitment they have come to expect.”
SMBC Nikko served as the tender offer agent as well as lead financial advisor, Mizuho Securities USA LLC acted as financial advisor, and Kirkland & Ellis LLP and Mori Hamada & Matsumoto acted as legal advisors for The Crosby Group. Debt financing is being provided by UBS Investment Bank, KKR Capital Markets, Sumitomo Mitsui Banking Corporation, Mizuho Bank, and ING Capital. Nomura acted as financial advisor and Nishimura & Asahi acted as legal advisor for KITO CORPORATION.