Columbus McKinnon to acquire montratec
Columbus McKinnon Corp., a designer, manufacturer and marketer of intelligent motion solutions for material handling, has executed a definitive agreement to acquire montratec GmbH, an automation solutions company that designs and develops intelligent automation and transport systems for interlinking industrial production and logistics processes. montratec provides its modular, intelligent monorail transport systems for the electric vehicle (EV), semiconductor, electronics, life sciences, aerospace and other industries.
“montratec is an ideal complement to our precision conveyance platform adding asynchronous technology for material transport solutions that accelerates our growth in very attractive markets with strong secular tailwinds," said David J. Wilson, president and CEO of Columbus McKinnon. "montratec’s solutions are at the heart of process automation in manufacturing, enhancing our precision conveying platform. Their technology advances our intelligent motion offering, expands market access and increases our value proposition. We plan to realize significant sales synergies as we leverage their conveying technology through our existing channels in the U.S. and their solid foundation in Europe to expand our global precision conveyance market share.
“This acquisition is an excellent demonstration of our strategy to drive growth with stronger earnings power and further catalyzes the transformation of Columbus McKinnon as a leading intelligent motion solutions provider for material handling,” Wilson added.
High Value-Add Technology for Production Process Automation
montratec’s intralogistics solutions for manufacturing, assembly and production processes minimize cycle times and maximize operational throughput for customers. Intelligent automation and transport systems are the centerpiece for networking industrial production and logistics processes by enabling complex internal transport operations that support faster, more efficient assembly processes.
Asynchronous movement enables products to be moved independently in multiple directions at varying speeds to balance production lines, increasing flexibility and productivity. montratec also brings a higher level of cleanroom certification that expands market access in the EV, life sciences, electronics and semiconductor verticals. Their monorail systems interlink production processes between robots, other processing equipment and workspaces, more flexibly creating intelligent process sequencing to boost the automation of complete production lines. Importantly, its monorail and shuttle/transport solutions can be configured for a variety of production needs from low volume/high mix to high volume/high speed. In addition, montratec’s solutions reduce energy costs and floor space requirements.
Multiple Strategic Benefits
montratec provides multiple strategic benefits to Columbus McKinnon including:
- Accelerates growth in markets with strong secular tailwinds, including electric vehicles, life sciences, electronics and semiconductors
- Advances capabilities up the technology stack with proprietary controls and configurable product offerings for precision conveyance and automation
- Generates significant revenue opportunities with geographic, channel and product cross-selling synergies
- Creates solid foundation to advance growth of precision conveyance platform in Europe with greater scale and strong market recognition
- Adds talented, motivated, and innovative team
- Strong Financial Profile with Backlog to Support Over 30% Growth
With approximately $29 million in revenue and 24% adjusted EBITDA margins* in the calendar year ended December 31, 2022, montratec is expected to grow revenue over 30% in 2023.
*Adjusted EBITDA margin is a non-GAAP measure. See accompanying discussion and reconciliation table in this release regarding the reconciliation of net income to adjusted EBITDA.
Transaction and Closing Details
The all-cash transaction is valued at approximately $110 million at closing using current exchange rates plus an earnout in an amount expected not to exceed $14 million based on EBITDA performance. The transaction is expected to close by May 31, 2023, subject to typical customary closing conditions.
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