Columbus McKinnon To Acquire Magnetek For $188.9 Mln

(RTTNews) - Columbus McKinnon Corp. (CMCO), a manufacturer and marketer of material handling products, and Magnetek, Inc. (MAG) said they have entered into a definitive agreement for Columbus McKinnon to acquire all of the outstanding shares of Magnetek for $50 per share for a total value of $188.9 million.

Excluding purchase accounting adjustments, the acquisition is expected to be $0.40 per share accretive to earnings in the first full fiscal year of combined operations. Columbus McKinnon estimates its one-time costs related to the transaction will be between $7.5 million to $8.5 million.

Cost synergies are expected to be at least $5 million in the first full year after the acquisition.

Magnetek designs and manufactures digital power and motion control solutions for material handling, elevators and mining applications.

According to the companies, the transaction combines complementary strengths to create more competitive and comprehensive material handling solutions for customers.

The agreement has been approved unanimously by the Boards of Directors of both companies.

Magnetek's Board of Directors has unanimously recommended that its shareholders tender into the offer, which is expected to commence on or before August 5.

All members of Magnetek's Board of Directors and executive officers, together with Fundamental Global Investors, LLC, have entered into agreement to tender the shares beneficially owned by them into the offer.