Columbus McKinnon acquiring montratec GmbH

Columbus McKinnon 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, semiconductor, electronics, life sciences, aerospace and other industries. montratec’s intralogistics solutions for manufacturing, assembly and production processes minimize cycle times and maximize operational throughput for customers. With approximately $29M in revenue and 24% adjusted EBITDA margins in 2022, montratec is expected to grow revenue over 30% in 2023. The all-cash transaction is valued at approximately $110M at closing plus an earnout in an amount expected not to exceed $14M based on EBITDA performance. The transaction is expected to close by May 31. Purchase price represents 13.0x 2023 expected adjusted EBITDA without synergies or 11.4x with projected synergies. Sources of cash to fund the acquisition are expected to include expanding the existing revolver from $100M to $175M as well as securitizing $50M in accounts receivable. Expects net leverage ratio on a financial covenant basis of 2.2x at March 31, 2023 moving to 2.7x following the closing of the acquisition.