KKR-backed Crosby Merges with Kito to Form New $1bn Brand

US based lifting tackle, equipment and accessories manufacturer Crosby has announced that the company will adopt the Kito Crosby brand as it merges the Crosby business with Kito, which it acquired last May.

The merger was transacted by a cash tender offer by Crosby for all 21 million shares in Kito for $21 per share -a total of $442m, which represents a premium of 64.3 percent over the closing price and a 61 percent premium. While the transaction was technically an acquisition, there are extensive agreements laying out the merger process on the basis of a ‘merger of equals’.

The company statement said: “The combined company will be better resourced, and ultimately better positioned to serve customers, team members, and communities globally through additional investment in products, people, and facilities. The combination will further foster innovation and enable customers to benefit from a broader portfolio of products across a global landscape as well as increased levels of service, support, and training. Additionally, the parties’ geographically complementary operations have the potential to accelerate growth through an expanded and diversified geographic footprint.”

The new corporate branding will sit above the individual product brands such as Kito, Crosby, Harrington, Gunnebo, Peerless, Crosby Straightpoint, BlokCam, Airpes, Acco, McKissick, Crosby Feubo, Trawlex, Lebus, Speedbinder, CrosbyIP, Jiangyin, Erikkila, Van Leusden, Kito Weissenfels, SCC and Fall Safe – all of which continue unchanged.

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Chief executive Robert Desel said: “We are thrilled to unveil our new brand, a symbol of our two legacy businesses combining as one team with a single mission and vision. This corporate identity serves as the focal point for all of us as we come together to best serve our valued channel partners and end users.”

Crosby – now Kito Crosby – has been a portfolio company of private equity firm KKR – Kohlberg Kravis Roberts – since 2013.

Founded in 1932, Kito had revenues for the year to the end of March 2022 of $483m with pre-tax profits of $49.6m products include overhead cranes, chain hoists and a range of fixed industrial cranes under the brands of Harrington, Peerless, Jiangyin, Erikkila, Van Leusden, Kito Weissenfels, SCC, and Fall Safe.

Source: Vertikal

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