RICHARDSON, Texas, and SHOWA-CHO, Japan – The Crosby Group, a global leader in lifting and rigging, and Kito Corporation, a leading manufacturer of hoists and cranes, announced Monday that they have entered into a definitive agreement to combine both businesses.
The transaction will be take effect through a cash tender offer by the Crosby Group to acquire all outstanding shares of Kito for JPY 2,725 per share, which represents a premium of 64.3% compared to Kito’s undisturbed closing price on May 13, and a 61% premium to Kito’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, Crosby and Kito will continue to operate as separate, independent companies. Kito also issued a statement of support for the planned transaction on Monday.
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 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’ complementary geographies have the potential to accelerate growth through an expanded and diversified footprint.
“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," said Crosby Group CEO Robert Desel. "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.”
“We believe this combination delivers tremendous value for all stakeholders," Kito CEO Yoshio Kito said. "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.”