Material handling products maker Columbus McKinnon Corp. (NASDAQ:CMCO) which develops hoists, cranes and rigging tools, has picked up rival Magnetek Inc. (NASDAQ: MAG) in a deal valued at $189 million in cash, or $50 per share.

Magnetek shares closed at $32.25 on July 24, the last full trading day before the deal was announced.

Menomonee Falls, Wisconsin-based Magnetek makes radio controls and motion control systems for cranes and elevators, generating about $112 million in annual sales.

The two companies expect the integration to be facilitated by the fact that the buyer has been a customer of the target’s. The acquisition gives Columbus McKinnon a chance to expand in the motion control technology space.

The combined company will have about $690 million in annual revenue, valuing the transaction at around 9 times Ebitda.

“Our technology and products are a perfect complement for Columbus McKinnon’s products and this compelling combination provides a platform to accelerate growth for both Magnetek and Columbus McKinnon,” said Magnetek CEO Peter McCormick.

Amherst, NewYork-based Columbus McKinnon is going to fund the acquisition with cash on hand and debt.

Moelis & Co. (NYSE: MC), DLA Piper along with Barclay Damon advised Columbus McKinnon. Kirkland & Ellis LLP advised Moelis. Goldman, Sachs & Co. (NYSE: GS) and Foley & Lardner LLP advised Magnetek.

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