As the Trump Administration works to bolster American manufacturing via tariffs, Charlotte, North Carolina-based manufacturing giant Columbus McKinnon Corporation (Nasdaq: CMCO) announced plans to acquire Kito Crosby Limited (Kito Crosby) for $2.7 billion. The all-cash deal is subject to regulatory approvals and post-closing purchase price adjustments but is expected to close later this year.
“Kito Crosby is a global leader in lifting solutions with multiple manufacturing assembly plants and nearly 4,000 employees serving over 50 countries,” according to the deal’s press release. “In 2024, Kito Crosby generated $1.1 billion in revenue through its extensive global channel partner network. Together the combined company will be a leader in material handling solutions with greater scale and a strong presence in attractive verticals and target geographies, delivering exceptional innovation and products to customers.”
Manufacturing Industry Output (MIO)
Source: DC Velocity
After facing sluggish growth of 0.6% during 2024, U.S. manufacturing output is projected to recover this year – as depicted in the chart above. At the same time, China, which currently accounts for nearly 50% of manufacturing market value, has had its projected growth downgraded from 2.8% to 2.4% as the nation’s economy faces challenges. Further, major European industrial powers are likewise facing downgrades as worldwide spending declines due to higher interest rates and inflation.
Source: Waupaca Foundry
While manufacturing jobs accounted for nearly 1 in 3 American jobs in the early 1980s, the dual recessions that followed hit the sector: manufacturing accounted for 90% of job losses during the 1980s. Manufacturing was hit again during the recession of 2008 as companies increasingly outsourced production to lower cost countries. “Today, manufacturing employment is well below the nearly 20 million it reached in 1979,” according to manufacturer Waupaca Foundry. “But jobs reached nearly 13 million based on preliminary data for November 2022—more than recovering from the COVID-19 slump and reaching the highest level of employment in the sector since 2009.” Jobs in the sector have become a hot button political issue.
Source: NBC News
The Trump Administration has sought to bring manufacturing home—primarily by negotiating directly with companies and levying tariffs on imports. Just this week President Trump announced a new 25% tariff on car and car part imports to further incentivize manufacturers to bolster domestic operations. Countries adversely affected have sought to employ retaliatory tariffs that conversely hinder American manufacturers’ ability to export abroad.
According to DealPulse’s M&A database, which harnesses both AI and attorneys to digest the granular deal points of publicly-announced transactions, Columbus McKinnon Corporation is advised by law firms DLA Piper, Debevoise & Plimpton LLP, and Hogan Lovells US LLP. Kito Crosby Limited is advised by Kirkland & Ellis LLP.
