Columbus McKinnon Corp. has an agreement to buy Magnatek Inc. for estimated $188.9 million, a deal it said “combines complementary strengths” to create an organization with comprehensive material handling technologies.
The all-cash deal has been approved by directors of both companies, and will be funded with a combination of cash and credit. All of Magnetek's directors and executive officers, as well as shareholder Fundamental Global Investors LLC, have agreed to surrender their shares in exchange for the $50/share offer.
Buffalo-based Columbus McKinnon designs and produces handling products for moving, lifting, and positioning materials, including hoists, cranes, actuators, and rigging tools. Among its subsidiary operations is a closed-die steel forging company, Dixie Industries.
Earlier this year, it acquired a similar German forging company, Stahlhammer Bommern GmbH, expanding its global footprint in the market supplying material handling tools and rigging.
Menomonee Falls, Wis.-based Magnetek designs and manufactures digital power and motion control systems for material handling, elevators, and mining operations. It has about 340 employees.
"The accretive combination of Magnetek's technology and ‘smart power’ with our broad line of lifting and positioning mechanical products creates a total solution for our customers," stated Columbus McKinnon president and CEO Timothy T. Tevens.
He added that “Magnetek's technology will enable the industrial world to continue to advance productivity and safety beyond what mechanical solutions alone can offer. Strategically, this acquisition provides an ideal adjacent capability for us to continue to supply our customers with best in class material handling solutions.”
Tevens pointed to anticipated “revenue synergies” that will be realized by advancing Magnetek's power control technology globally through Columbus McKinnon’s multiple sales channels, and by introducing it into certain vertical markets. He also said Columbus McKinnon would be able to offer more complete material handling packages to vertical markets like automotive, heavy industrial OEMs, mining, and energy.
Magnatek Peter M. McCormick will remain with the combined company after the acquisition, and will continue to lead the Magnetek business.