MENOMONEE FALLS — The
acquisition of Magnetek by Columbus McKinnon Corporation was
As previously announced as
part of the acquisition, Columbus McKinnon will maintain the
Magnetek brand and its operations in Menomonee Falls under the
continued leadership of Peter M. McCormick, the current
president and CEO of Magnetek.
Corporation is a designer, manufacturer and marketer of material
handling products and Magnetek is a designer and manufacturer of
digital power and motion control solutions for material
handling, elevator and mining applications.
By purchasing Magnetek,
Columbus McKinnon will gain technology, capabilities and the
value of the Magnetek brand to create more competitive and
comprehensive material handling solutions for its customers,
according to the announcement.
“With this accretive
combination, we can more fully address the continued global
trend of industrial and commercial businesses searching for ways
to improve productivity and safety in their operations,” said
Timothy T. Tevens, president and CEO of Columbus McKinnon. “We
are all very excited about the expanded market potential this
transaction provides. We command a measurably broader market for
Magnetek’s technologies and the addition of their power control
technology impressively enhances our product offering.”
Under the terms of the
transaction, Columbus McKinnon is paying $50 per share in cash
for each share of Magnetek for an aggregate purchase price of
approximately $188.9 million. Columbus McKinnon expects the
acquisition to contribute $0.40 per share earnings accretion in
the first full fiscal year of combined operations, which
includes $5 million in cost synergies and excludes any effects
of purchase accounting.