Columbus McKinnon Sells U.S. Power Chain Business for $210M
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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Columbus McKinnon Declares Quarterly Dividend of $0.07
- Quarterly Dividend Announcement: Columbus McKinnon Corporation declared a quarterly dividend of $0.07 per share, consistent with previous distributions, indicating the company's stable cash flow and commitment to shareholder returns.
- Dividend Yield: The forward yield of 1.35% reflects the company's attractiveness in the current market environment, potentially drawing more investor interest.
- Dividend Payment Timeline: The dividend is payable on February 23, with a record date of February 13 and an ex-dividend date also on February 13, ensuring timely returns for shareholders.
- Financing Plans: Columbus McKinnon plans to raise $1.25 billion through senior notes and loans, aimed at enhancing financial flexibility and supporting future growth strategies.
Columbus McKinnon Corporation Declares Quarterly Dividend
- Quarterly Dividend Announcement: Columbus McKinnon Corporation's Board of Directors has approved a quarterly dividend of $0.07 per common share, expected to be paid on February 23, 2026, reflecting the company's commitment to shareholder returns.
- Shareholder Record Date: The record date for this dividend is set for February 13, 2026, ensuring that investors holding shares before this date will receive the dividend, thereby enhancing investor confidence in their holdings.
- Total Shares Outstanding: Columbus McKinnon currently has approximately 28.7 million common shares outstanding, and the dividend payment will directly impact the company's cash flow and shareholder return strategy.
- Company Overview: As a leading designer, manufacturer, and marketer of intelligent motion solutions, Columbus McKinnon focuses on enhancing safety and efficiency in material handling, continuously driving innovation in commercial and industrial applications.
