Columbus McKinnon Sells U.S. Power Chain Business for $210M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 14 2026
0mins
Columbus McKinnon announced that it has entered into a definitive agreement to sell its U.S. power chain hoist and chain manufacturing operations based out of its Damascus, Virginia and Lexington, Tennessee facilities to an affiliate of Pacific Avenue Capital Partners for $210M with a potential earn out of $25M. The transaction is expected to close within the Q1. Following the close of the Divestiture, cash proceeds of approximately $160M, excluding approximately $50M of expected taxes and transaction-related costs, are expected to be used to reduce the debt incurred to finance the previously announced acquisition of Kito Crosby. Additional earn out proceeds from the Divestiture, if any, are expected to be used to further reduce debt incurred to finance the Acquisition in line with the Company's primary capital allocation priority of debt reduction and deleveraging. Inclusive of both the Acquisition and the Divestiture, $70M of annual net run rate cost synergies, and assuming that each of these transactions closed on April 1, 2025, Columbus McKinnon would have expected, on a pro forma basis, to deliver approximately $2.00B-$2.05B in net sales and between $440M-$460M of Adjusted EBITDA for Q1. As the exact timing of the transaction closings for both the Acquisition and the Divestiture remains uncertain, the impact to the Company's fiscal Q4 net sales and Adjusted EBITDA1 results remains uncertain. Given that the transaction expenses, purchase accounting adjustments and early integration costs are expected to be recorded in the fiscal Q4, the impact of the Acquisition is expected to be dilutive to GAAP earnings per share in the fourth quarter and for the full FY26. Following the closing of the transactions, the Company's primary allocation of capital is expected to be debt reduction.
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Analyst Views on CMCO
Wall Street analysts forecast CMCO stock price to rise
1 Analyst Rating
0 Buy
1 Hold
0 Sell
Hold
Current: 13.980
Low
15.00
Averages
15.00
High
15.00
Current: 13.980
Low
15.00
Averages
15.00
High
15.00
About CMCO
Columbus McKinnon Corporation is a designer, manufacturer and marketer of intelligent motion solutions for material handling. Its key products include hoists, crane components, precision conveyor systems, rigging tools, light rail workstations and digital power and motion control systems. The Company focuses on commercial and industrial applications that require the safety and quality provided by its design and engineering know-how. Its products include a wide variety of electric, air-powered, lever, and hand hoists, hoist trolleys, explosion-protected hoists, winches, and aluminum work stations; alloy and carbon steel chain; forged attachments, such as hooks, shackles, textile slings, clamps, and load binders; mechanical and electromechanical actuators and rotary unions; below-the-hook special purpose lifters; and power and motion control systems, among others. Its target market verticals include manufacturing, transportation, energy and utilities, aerospace, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Supply Chain Recovery Outlook: The closure of the Strait of Hormuz, which handles 20% of global seaborne oil, disrupted supply chains for three months; however, Trump's signal offers a more credible prospect for ending this disruption, thereby reducing operational costs for manufacturers and logistics companies.
- Impact of Falling Oil Prices: WTI crude oil prices have dropped from a wartime peak near $100 to $87.71, directly lowering operating costs across manufacturing, chemicals, and transportation sectors, which further improves the financing environment for capital-intensive industries.
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- Significant EBITDA Improvement: The company reported an adjusted EBITDA of $69 million in the fourth quarter, up 93% year-over-year, with an adjusted EBITDA margin of 15.7%, expanding by 130 basis points, indicating success in cost control and operational efficiency.
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See More
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- Market Rally: Trump's peace signal regarding Iran led to a stock market rally in the afternoon session, with cyclical stocks leading the charge and the VIX falling 12.5% to 19.44, indicating that investors are broadly repricing geopolitical risks lower, which boosts market confidence.
- Supply Chain Recovery Outlook: The closure of the Strait of Hormuz, which handles 20% of global seaborne oil, disrupted supply chains for three months; however, Trump's signal offers a more credible prospect for ending this disruption, thereby reducing operational costs for manufacturers and logistics companies.
- Impact of Falling Oil Prices: WTI crude oil prices have dropped from a wartime peak near $100 to $87.71, directly lowering operating costs across manufacturing, chemicals, and transportation sectors, which further improves the financing environment for capital-intensive industries.
- Investor Opportunities: Despite the Industrial Select Sector SPDR ETF (XLI) declining about 1.25% to $168.62, the market volatility presents good buying opportunities for high-quality stocks, particularly companies like Alta (NYSE:ALTG) and Columbus McKinnon (NASDAQ:CMCO), which rose 5.3% and 5.2%, respectively.
See More
Columbus McKinnon Reports Strong Earnings with Significant Sales Growth
- Sales Performance Surge: Columbus McKinnon achieved $1.2 billion in sales for fiscal 2026, marking a 24% year-over-year increase, primarily driven by organic growth and the acquisition of Kito Crosby, showcasing the company's robust market performance.
- Significant EBITDA Improvement: The company reported an adjusted EBITDA of $69 million in the fourth quarter, up 93% year-over-year, with an adjusted EBITDA margin of 15.7%, expanding by 130 basis points, indicating success in cost control and operational efficiency.
- Strong Backlog Position: Columbus McKinnon holds a backlog of $520 million, including $320 million from legacy CMCO and $200 million from Kito Crosby, reflecting strong future demand and enhancing financial stability.
- Optimistic Future Outlook: The company anticipates net sales for fiscal 2027 to range between $2.05 billion and $2.12 billion, with adjusted EBITDA expected to be between $390 million and $410 million, reflecting confidence in market demand despite inflationary pressures and geopolitical challenges.
See More
CMCO Q4 2026 Earnings Transcript
See More
Columbus McKinnon Issues Fiscal 2027 Guidance Amid Q4 Earnings Report
- Earnings Performance: Columbus McKinnon reported a Q4 non-GAAP EPS of $0.24, missing estimates by $0.12, while revenue reached $437.8 million, a 77.3% year-over-year increase, exceeding expectations by $19.92 million, indicating strong market growth potential.
- Fiscal 2027 Guidance: The company projects fiscal 2027 net sales between $2.05 billion and $2.12 billion, with adjusted EBITDA expected to be between $390 million and $410 million, and adjusted EPS ranging from $1.70 to $1.90, reflecting the impact of the Kito Crosby acquisition and divestiture.
- Expense Estimates: For fiscal 2027, interest expenses are projected to be between $185 million and $190 million, amortization expenses between $135 million and $140 million, and depreciation expenses between $75 million and $80 million, demonstrating a cautious approach to financial management.
- Equity Structure: The expected adjusted diluted shares outstanding will be 52 million, reflecting the company's decision to accrue and compound dividends on preferred shares rather than pay them in cash, which may impact future cash flow and shareholder returns.
See More
Columbus McKinnon Reports Significant Growth in Fiscal Year 2026
- Sales Surge: In Q4 of Fiscal Year 2026, Columbus McKinnon reported net sales of $437.8 million, a 77.3% increase year-over-year, with U.S. sales rising 68.1%, driven by the Kito Crosby acquisition, significantly enhancing the company's market competitiveness.
- Profitability Improvement: Despite macroeconomic challenges, the company achieved a gross profit of $102.9 million in Q4, with a gross margin of 23.5%, down 880 basis points from the prior year, yet adjusted gross profit rose 64.5%, indicating successful cost synergies during integration.
- Cash Flow Position: At the end of FY 2026, the company had total liquidity of $561.2 million, with net cash used in operating activities of $146.2 million; however, free cash flow excluding deal costs increased by 171%, showcasing the company's future capital allocation capabilities.
- Optimistic Outlook: The company projects net sales for FY 2027 to be between $2.05 billion and $2.12 billion, with adjusted EBITDA expected to range from $390 million to $410 million, reflecting positive market demand expectations and ongoing operational improvements, enhancing shareholder return potential.
See More
Columbus McKinnon Reports Q4 FY2026 Financial Results Highlighting Kito Crosby Acquisition Impact
- Significant Order Growth: Columbus McKinnon reported total orders of $442.8 million in Q4 FY2026, a 68% increase year-over-year, primarily driven by the Kito Crosby acquisition, indicating strong market demand and integration capabilities.
- Substantial Sales Increase: The company achieved net sales of $437.8 million, up 77% year-over-year, with significant contributions from the Kito Crosby acquisition, demonstrating effective market share expansion and revenue enhancement.
- Increased Net Loss: The net loss attributable to the company was $238 million, resulting in a net loss margin of 54.4%, primarily due to a $200 million goodwill impairment and $68.1 million in deal-related costs, reflecting challenges during the acquisition integration process.
- Optimistic Future Outlook: The company projects FY2027 net sales between $2.05 billion and $2.12 billion, with adjusted EBITDA expected to be between $390 million and $410 million, showcasing confidence in future growth and margin expansion.
See More
