Wednesday 03 March 2021

New York-based material handling solutions manufacturer Columbus McKinnon Corp. (NASDAQ: CMCO) has agreed to acquire Wisconsin-based automation solutions provider Dorner Manufacturing Corp. from global private markets firm EQT, the company said.

The cash transaction, valued at USD 485m, is expected to close early in the company's first quarter of fiscal 2022, subject to typical closing conditions and regulatory requirements.

J.P. Morgan Chase Bank, N.A. is administrative agent on Columbus McKinnon's existing credit facilities and has provided committed underwritten debt financing in support of the transaction.

The permanent financing plan anticipates a mix of debt and equity, targeting a net leverage ratio in the near-term of less than 4.0x Adjusted EBITDA with expectations of reducing the net leverage ratio below the company's targeted 2.0x net debt to Adjusted EBITDA within two years.

Dorner advances Columbus McKinnon's strategy to broaden expertise in intelligent motion solutions for material handling, provides access to high-growth secular markets and strengthens earnings power.

The acquisition of Dorner is a defining move that advances the Blueprint for Growth 2.0 strategy and enables multiple opportunities for future growth.

J.P. Morgan Securities LLC acted as exclusive financial advisor. DLA Piper served as outside counsel on the transaction and financing.

Columbus McKinnon is a designer, manufacturer and marketer of intelligent motion solutions, products, technologies, systems and services that efficiently and ergonomically move, lift, position and secure materials.

Dorner Manufacturing Corp. is an automation solutions company providing unique, patented technologies in the design, application, manufacturing and integration of high-precision conveying systems.