Columbus McKinnon completes acquisition of Magnetek

Freeman Staff

Sept. 2, 2015

MENOMONEE FALLS — The acquisition of Magnetek by Columbus McKinnon Corporation was finalized Wednesday.

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.

Columbus McKinnon 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.