Author: MIL-OSI Publisher

The Justice Department’s Antitrust Division announced today that it will require Columbus McKinnon Corporation (CMCO) to divest its power chain hoist and chains businesses and related assets to resolve antitrust concerns arising from its proposed $2.7 billion acquisition of Kito Crosby Limited (Kito Crosby) from funds managed by global investment firm KKR.

The Antitrust Division today filed a civil antitrust lawsuit in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the Division filed a proposed settlement that, if approved by the court, would resolve the Division’s competitive concerns.

“Today’s settlement is a structural solution to an acquisition that would have harmed competition for important equipment that facilitates the safe and efficient movement of heavy loads in a wide range of industries across the American economy,” said Assistant Attorney General Abigail Slater of the Justice Department’s Antitrust Division. “The settlement, which includes two manufacturing facilities, will ensure that American customers and industries will continue to benefit from competition between the leading providers of this important equipment.”

As alleged in the complaint, CMCO and Kito Crosby are two of the leading manufacturers in the markets for electric chain hoists and overhead lifting chain in the United States. Electric chain hoists, a type of power chain hoist, use a chain driven by an electric motor to lift, lower, and position heavy materials. Electric chain hoists are designed to be durable and can be used independently or integrated into a small overhead crane. Industries across the economy – including automotive, aerospace, energy, construction, and logistics – rely on electric chain hoists daily to increase efficiency and reduce strain on operators. Overhead lifting chain is exclusively made from forged alloy steel and meets ASTM standards for chain strong enough to ensure safe lifting operations. CMCO and Kito Crosby compete head-to-head to develop, manufacture, distribute, and sell electric chain hoists and overhead lifting chain. Without the proposed divestiture, CMCO’s acquisition of Kito Crosby would likely result in higher prices, lower quality, and reduced innovation to the detriment of customers.

The proposed settlement requires CMCO to divest its power chain hoist business, including electric chain hoists, and its chain business, including overhead lifting chain, to Pacific Avenue Capital Partners LLC, an American company with significant experience in industrial manufacturing. Pacific Avenue Capital Partners is expected to hire certain key CMCO employees that today support the divested businesses.

CMCO is an American multinational company, with its headquarters in Charlotte, North Carolina. In 2024, CMCO had revenues of approximately $1 billion.

Kito Crosby is a U.K. multinational company with its headquarters in Arlington, Texas. In 2024, Kito Crosby reported $1.1 billion in revenue.

KKR is an American multinational company with its headquarters in New York, New York.

As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement within 60 days following the publication to Soyoung Choe, Acting Chief, Defense, Industrials, and Aerospace Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street NW, Suite 8700, Washington, DC 20530 or via email at ATR.Public-Comments-Tunney-Act-MB@usdoj.gov. At the conclusion of the public comment period, the U.S. District Court for the District of Columbia may enter the final judgment upon finding it is in the public interest.

Note: View the Proposed Final Judgement here; the Complaint here; and the Competitive Impact Statement here.