Making the announcement, David Wilson, president and CEO, CMCO, said the acquisition strengthens the company’s position as a provider of motion solutions and praised Kito Crosby’s management team led by Robert Desel and Yoshio Kito.
Wilson said the merger will address a growing demand in key sectors such as reshoring, infrastructure, and automation, all of which are increasingly important due to labor shortages and aging industrial facilities.
Kito Crosby operates numerous manufacturing plants worldwide and employs nearly 4,000 people. Under KKR’s ownership since 2013, Kito Crosby has significantly expanded its revenue, product offerings, and workforce, while enhancing safety and reducing injury rates.
In 2024, the company generated $1.1 bn in revenue, leveraging an extensive global partner network.
The merger will create a stronger company, with increased scale and greater presence in key markets.
In announcing the news, Robert Desel, CEO of Kito Crosby, shared excitement about the merger, noting the complementary strengths of both companies and the shared commitment to safety, quality, and customer satisfaction. He believes the combined entity will be better positioned to meet customer needs and create growth opportunities for employees.
In praising the deal, Brandon Brahm, a partner at KKR, highlighted how the company’s transformation under its ownership has positioned Kito Crosby for this next step, which will benefit both customers and employees.
The merger is expected to enhance the financial profile of the combined company, with projected annual revenue of $2.1 billion and Adjusted EBITDA of $486 million. The company expects to achieve $70 million in annual cost synergies by the third year.
