Crosby Group and KITO to merge
The Crosby Group, a manufacturer of lifting and rigging equipment, and KITO Corporation, a material handling manufacturer of hoists and cranes, have entered into a definitive agreement to combine both businesses.
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The transaction will be effected through a cash tender offer by The Crosby Group to acquire all of the outstanding shares of KITO Corporation for JPY 2,725 per share, which represents a premium of 64.3 percent compared to KITO’s undisturbed closing price on May 13, and a 61.0 percent premium to KITO Corporation’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, The Crosby Group and KITO Corrporation will continue to operate as separate, independent companies.
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 further 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’ geographically complementary operations have the potential to accelerate growth through an expanded and diversified geographic 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 Robert Desel, CEO of The Crosby Group. “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.”
Yoshio Kito, CEO of KITO Corporation said: “We believe this combination delivers tremendous value for all stakeholders. 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.”
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