Columbus McKinnon Corporation (CMCO) announced that it has purchased Stahlhammer Bommern GmbH (STB), the manufacturer of lifting tools and forged parts that are able to withstand heavy static and dynamic loads. STB is a leading European manufacturer of heavy-load single and ramshorn hooks.
Columbus McKinnon bought STB for $24.6 million in cash and assumed about $6.6 million of net debt. The purchase deal also includes a potential $3.7 million earn-out, subject to achieving a specific profit target through 2015. With the acquisition of STB, the rigging tool portfolio of Columbus McKinnon will expand, including a much wider variety of eye, shank and ramshorn lifting hooks.
The acquisition will also enhance Columbus McKinnon’s foothold across targeted global vertical markets, such as oil & gas, mining, construction and heavy equipment industries. The company aims at making products of STB available globally through its established sales and distribution network.
Columbus McKinnon, a leading maker and marketer of material handling products and services, released its second-quarter fiscal 2015 (ended Sep 30, 2014) results in Oct 2014. The company’s earnings increased 47.2% year over year to 53 cents in the reported quarter.
Net sales were $147 million, up 5.9% from the year-ago quarter, driven by volume gains in the U.S., Asia Pacific and Latin America, as well as better pricing and one additional shipping day.
Columbus McKinnon currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the industrial goods sector include Alamo Group, Inc. (ALG), Regal Beloit Corp. (RBC) and ZBB Energy Corp. (ZBB). While Alamo Group carries a Zacks Rank #1 (Strong Buy), Regal Beloit and ZBB Energy hold a Zacks Rank #2 (Buy).
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