COLUMBUS MCKINNON CORP 8-K

What Happened

• Columbus McKinnon Corporation announced on January 13, 2026 that it entered into an Equity Purchase Agreement to sell 100% of Royal NY Company Holdings, LLC and its U.S. power chain hoist (excluding Little Mule®) and chain manufacturing operations to Star Hoist Intermediate, LLC.
• The base purchase price is $210,000,000 (subject to customary closing adjustments such as working capital, indebtedness and transaction expenses), plus a potential earnout of up to $25,000,000 if the Business exceeds specified net sales thresholds in fiscal years 2027 and 2028. The Company also executed Contribution Agreements to transfer the Business assets to Holdings and shift related liabilities.
• The parties expect the sale to close on or about January 30, 2026 (or the last business day of the month in which closing conditions are satisfied), subject to customary closing conditions; the agreement includes a termination deadline of April 30, 2026 if not completed.

Key Details

• Buyer: Star Hoist Intermediate, LLC (agreement involves Royal NY Company Holdings, LLC).
• Base consideration: $210,000,000, subject to customary adjustments (working capital, indebtedness, transaction expenses).
• Earnout: Up to $25,000,000 if net sales of the Business exceed the agreed thresholds in fiscal 2027–2028; partial prorated earnout may apply if Buyer divests the Business early or discontinues product lines.
• Timing & conditions: Expected close Jan 30, 2026 (or as noted); requires customary conditions including accuracy of reps/warranties, third‑party consents, payoff of indebtedness and absence of material adverse effect; agreement may be terminated under specified events or if not closed by April 30, 2026.
• Disclosure: Press release announcing the transaction was furnished on January 14, 2026 under Regulation FD.

Why It Matters

• This is a material divestiture of Columbus McKinnon’s U.S. power chain hoist and chain manufacturing operations (except Little Mule®), which will change the company’s business mix and remove the associated sales and operations from Columbus McKinnon if the transaction closes.
• The transaction provides a significant cash consideration ($210M, plus potential earnout), but is subject to closing adjustments and conditions; investors should note the closing is not automatic and includes customary risks (third‑party consents, indebtedness payoff, material adverse changes).
• Further details, including any financial impact on Columbus McKinnon’s reported results and use of proceeds, will depend on closing outcomes and future disclosures by the company.