Menomonee Falls-based Magnetek Inc. has entered an agreement to be acquired by Amherst, NY-based Columbus McKinnon Corp. for about $189 million.
Magnetek, which has about 340 employees, manufactures digital power and motion control systems used in applications including material handling, elevator, mobile hydraulic and mining. It is one of North America’s largest independent digital drives, radio controls, software and accessories suppliers for industrial cranes and hoists, and has counted Columbus McKinnon as a customer.
Columbus McKinnon manufactures material handling systems used to lift, position and secure materials. The company would acquire all the shares of Magnetek’s common stock for $50 cash per share under the agreement. Upon completion of the deal, Magnetek would become a wholly owned subsidiary of Columbus McKinnon.
According to the companies, the acquisition will combine their complementary assets to develop broader and more competitive material handling solutions. Both companies’ boards of directors have approved the transaction, and Magnetek’s board has urged shareholders to tender into the offer, which is expected to occur on or before Aug. 5.
“The accretive combination of Magnetek’s technology and ‘smart power’ with our broad line of lifting and positioning mechanical products creates a total solution for our customers,” said Timothy Tevens, president and chief executive officer of Columbus McKinnon. “We believe Magnetek’s technology will enable the industrial world to continue to advance productivity and safety beyond what mechanical solutions alone can offer. Strategically, this acquisition provides an ideal adjacent capability for us to continue to supply our customers with best in class material handling solutions.”
“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 Peter McCormick, Magnetek’s president and CEO. “Our companies have a strong commitment to quality and service and have excellent reputations in the markets we serve with very similar corporate cultures. Importantly, our strong and dedicated team will contribute to what I believe is a formula for success.”
McCormick will remain on board to continue to lead the Magnetek subsidiary and to aid in the integration.
The transaction is expected to close within 90 days. The companies expect the combination to result in at least $5 million of cost synergies in the first full year.
