Larco, a manufacturer and servicer of large capacity overhead cranes based in Stoney Creek, Ontario, was sold to Canadian Overhead Handling Inc. (COH) of Montreal, Quebec. The net proceeds of the Larco sale will be used for debt reduction and general operating purposes.
The sale will not have a material impact on CM’s financial results for its fiscal 2007 fourth quarter which ends on March 31 2007. For the latest 12 months, Larco contributed revenue of approximately $10million and operated near breakeven.
CM president and CEO Tim Tevens said: “Given its narrowly focused product line and market, Larco was not an essential strategic fit with our CES business which is focused on growth in the United States and other global markets. Larco will be better positioned for growth under its new owners based on their leadership position in Canada as a manufacturer of large specialty cranes.”
COH will continue to operate the business as Larco Industrial Services, Ltd. with facilities in Stoney Creek and Cambridge, Ontario and plans to retain Larco’s employees, it said.
Under its new ownership, Larco will continue to be “a key distributor of the various Columbus McKinnon brand products in Southern Ontario,” according to CM.
