Columbus McKinnon Corporation, a leading designer, manufacturer and marketer of material handling products, today announced that, through a wholly owned subsidiary, it has completed the acquisition of Magnetek, a leading designer and manufacturer of digital power and motion control solutions for material handling, elevator and mining applications. With the close of this acquisition, Columbus McKinnon gains technology, capabilities and the value of the Magnetek brand to create more competitive and comprehensive material handling solutions for its customers.
Timothy T. Tevens, President and CEO of Columbus McKinnon, commented, "With this accretive combination, we can more fully address the continued global trend of industrial and commercial businesses searching for ways to improve productivity and safety in their operations. We are all very excited about the expanded market potential this transaction provides. We command a measurably broader market for Magnetek's technologies and the addition of their power control technology impressively enhances our product offering. This compelling blend of products and know-how enables us to bring 'smart' lifting and moving solutions to our customers."
Columbus McKinnon plans to maintain the Magnetek brand and its operations in Menomonee Falls, Wisconsin, under the continued leadership of Peter M. McCormick, the current President and CEO of Magnetek.
Under the terms of the transaction, Columbus McKinnon is paying $50 per share in cash for each share of Magnetek for an aggregate purchase price of approximately $188.9 million. Columbus McKinnon expects the acquisition to contribute $0.40 per share earnings accretion in the first full fiscal year of combined operations, which includes $5 million in cost synergies and excludes any effects of purchase accounting. During fiscal year 2016, which ends March 31, 2016, the acquisition will have the effects of approximately $7.5 million to $8.5 million pre-tax onetime costs plus normal purchase accounting adjustments.
All shares of Magnetek will be immediately suspended from trading on The NASDAQ Stock Market.
About Columbus McKinnon
Columbus McKinnon is a leading worldwide designer, manufacturer and marketer of material handling products, systems and services, which efficiently and ergonomically move, lift, position and secure materials. Key products include hoists, cranes, actuators and rigging tools. The Company is focused on commercial and industrial applications that require the safety and quality provided by its superior design and engineering know-how.