Amherst, N.Y.-based Columbus McKinnon Corp., a material handling products manufacturer, has completed its acquisition of Menomonee Falls-based Magnetek Inc.
Magnetek manufactures digital power and motion control solutions for material handling, elevator and mining applications. 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.
The $188.9 million transaction, announced in July, is expected to provide enhanced technology, innovation, branding and expertise to Columbus McKinnon.
The brand and operations will remain intact at Magnetek, and its president and chief executive officer, Peter McCormick, will continue to lead the subsidiary. The company has about 340 employees. While Columbus McKinnon, which has 2,735 employees at 17 global manufacturing facilities, does not yet have any firm hiring plans, it expects to add additional employees at Magnetek as it grows the business, said Gregory Rustowicz, chief financial officer and vice president of finance at Columbus.
Columbus McKinnon expects the acquisition to be accretive in the first full year following the combination, to the tune of about 40 cents per share. The acquisition will offer $5 million in cost synergies in the next fiscal year, but will cost between $7.5 million and $8.5 million to complete in the current fiscal year.
"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 Tevens, president and chief executive officer 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. This compelling blend of products and know-how enables us to bring 'smart' lifting and moving solutions to our customers."