Complementary geographic footprints and product portfolios as well as a shared commitment to safety, reliability, and innovation will support safer and more efficient lifting operations globally
RICHARDSON, Texas, United States, and SHOWA-CHO, Yamanashi, Japan – The Crosby Group, a global leader in lifting and rigging, and KITO CORPORATION, a leading material handling manufacturer with 90 years of experience in the development and production of hoists and cranes, today announced that they have entered into a definitive agreement to combine both businesses. The business combination will be effected through a cash tender offer by The Crosby Group to acquire all of the outstanding shares of KITO CORPORATION for JPY 2,725 per share, which represents a premium of 64.3% compared to KITO CORPORATION’s undisturbed closing price on May 13, and a 61.0% premium to KITO CORPORATION’s three-month simple average closing price. The tender offer is expected to be completed in the second half of this year, subject to customary closing conditions including regulatory clearances from relevant authorities. Until close, The Crosby Group and KITO CORPORATION will continue to operate as separate, independent companies. KITO CORPORATION today also issued a press release statement of support for the planned transaction.
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.
Robert Desel, CEO of The Crosby Group, said: “This is an extraordinary opportunity to bring together two companies with differentiated, industry-leading capabilities, to create exceptional value for all stakeholders: team members, channel partners, end users, and communities. We have long respected KITO CORPORATION as they exemplify our core values of safety, reliability, and innovation and are thrilled to combine with them to provide best-in-class products, solutions, and services for customers worldwide.”
"The strategic wisdom and industrial logic of this combination are compelling. It will pair the highly complementary product portfolios of The Crosby Group and KITO CORPORATION and allow customers access to a broad selection of lifting and material handling solutions from one trusted manufacturer. Together, the companies will be able to accelerate innovation through increased investment in new product development and enable end users to achieve higher levels of efficiency and safety through better technical, application, and training support from a combined business.”
Yoshio Kito, CEO of KITO CORPORATION said: “We believe this combination delivers tremendous value for all stakeholders. We couldn’t have imagined a better partner and we are confident that this combined business will build upon its great brands to best serve our customers, team members, and communities. We will work together to develop and expand our product offerings, differentiate ourselves based on our customer first principle, and enhance our presence as a global leader.”
SMBC Nikko served as lead financial advisor and Mizuho Securities USA LLC acted as financial advisor, and Kirkland & Ellis and Mori Hamada & Matsumoto acted as legal advisors for The Crosby Group. Debt financing is being provided by UBS Investment Bank, KKR Capital Markets, and Sumitomo Mitsui Banking Corporation. Nomura acted as financial advisor and Nishimura & Asahi acted as legal advisor for KITO CORPORATION.
ABOUT THE CROSBY GROUP
The Crosby Group, a KKR portfolio company, is a global leader in the innovation, manufacturing and distribution of products and services used to make lifting and rigging safer and more efficient, with premier brands such as Crosby, Gunnebo Industries, Crosby Straightpoint, Crosby BlokCam, Crosby Airpes, Acco, McKissick, Crosby Feubo, Trawlex, Lebus, Speedbinders and Crosby IP. With global engineering, manufacturing, distribution and operations, the company provides a broad range of products and solutions for the most demanding applications with uncompromising quality that exceed industry standards.
ABOUT KITO CORPORATION
Since its founding in 1932, KITO CORPORATION has been a leading manufacturer of material handling equipment, specializing in meeting our customers’ need for lifting, transporting, and securing operations. KITO CORPORATION supplies products that enhance customer safety and productivity in a wide range of worksites where heavy objects are handled, with premier brands such as KITO, Harrington, Peerless, Jiangyin, Erikkila, Van Leusden, KITO Weissenfels, SCC, and Fall Safe. From the factory floors of key industries, such as construction, civil engineering, and manufacturing, to high-tech factories of semiconductors and liquid crystal panels and the entertainment field, KITO CORPORATION products have been widely used and have earned KITO CORPORATION a high degree of trust from customers all over the world as a leading company for material handling equipment.
The Crosby Group
Jochen Legewie, Kekst CNC Tokyo
For United States and Rest of the World:
Melissa Ruths, The Crosby Group
+1 (214) 974-9714
Tsuyoshi Oshita, KITO CORPORATION