What changed in this filing

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Item 1. Business

2025-05-28 compared with 2024-05-29 · 79 added, 63 removed, 156 unchanged (48% of the section changed)

Columbus McKinnon Corporation ("Columbus McKinnon" or the "Company") is a leading worldwide designer, manufacturer and marketer of intelligent motion solutions that move the world forward and improve lives by efficiently and ergonomically moving, lifting, positioning and securing materials.

Founded in 1875, Columbus McKinnon Corporation (referred to in this Form 10-K as “we,” “us,” “our,” “Columbus McKinnon” or the “Company”) is a leading worldwide designer, manufacturer and marketer of intelligent motion solutions for material handling that move the world forward and improve lives by efficiently and ergonomically moving, lifting, positioning and securing materials.

Key products include hoists, crane components, precision conveyor systems, rigging tools, light rail workstations and digital power and motion control systems.

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Our products are used for mission critical applications where we have established, trusted brands that are well known in the industry.

Our targeted market verticals include manufacturing, transportation including EV production and aerospace, energy and utilities, process industries, industrial automation, construction and infrastructure, food and beverage, entertainment, life sciences, consumer packaged goods and e-commerce/supply chain/warehousing.

In fiscal 2022, the Company initiated a new long-term strategy to transform from a legacy cyclical industrial company to a high growth, high margin secular growth company.

The Company expanded into the precision conveyance sector with its acquisitions of Dorner Mfg.

("Dorner") and Garvey Corporation ("Garvey").

Dorner is a leading automation solutions company providing unique, patented technologies in the design, application, manufacturing and integration of high-precision conveying systems.

Dorner is a leading supplier to the stable life sciences, food processing, and consumer packaged goods markets as well as the higher growth industrial automation and e-commerce sectors.

The addition of Dorner has provided attractive complementary adjacencies to the Company.

Dorner offers a broad range of precision conveying systems to our product offerings, which include low profile, flexible chain, large scale, sanitary and vertical elevation conveyor systems, as well as pallet system conveyors.

The Garvey acquisition added additional product capabilities as it is a leading accumulation systems solutions company providing unique, patented systems for the automation of production processes whose products complement those of Dorner.

The Company added asynchronous conveying technology in the precision conveyance sector in fiscal 2024 with its acquisition of montratec GmbH ("montratec"), a leading automation solutions company that designs and develops intelligent automation and transport systems for interlinking industrial production and logistics processes.

montratec product offerings compliment the previous acquisitions of both Dorner and Garvey.

Together, our acquisitions within the precision conveyance industry established a platform for growth organically as well as through further acquisitions as the industry is highly fragmented and offers complementary adjacencies, which we believe will enable further growth.

In the United States, we are the market leader for hoists, material handling digital power control systems and precision conveyors, our principal lines of products, and have strong market positions with certain chain, forged fittings, and actuator products.

Additionally, in Europe, we believe we are the market leader for manual hoists and a market leader in linear actuators used for heavy load, rail and niche custom applications for actuation.

In the United States, we are a market leader for hoists, material handling digital power control systems and precision conveyors, our principal lines of products, and have strong market positions with certain chain, forged fittings, and linear actuator products.

Additionally, in Europe, we believe we are a market leader for manual hoists and a market leader in linear actuators used for heavy load, rail and niche custom applications for actuation.

We have achieved this leadership position through strategic acquisitions, our extensive, diverse, and well-established distribution channels and our commitment to product innovation and quality.

We believe the substantial breadth of our product offerings and broad distribution channels in the United States and Europe provide us a strategic advantage in our markets.

The acquisition of STAHL CraneSystems ("STAHL") in fiscal 2017, which is well-known for its custom engineering lifting solutions and hoisting technology, advanced our position as a global leader in the production of explosion-protected hoists.

STAHL serves independent crane builders and Engineering Procurement and Construction ("EPC") firms, providing products to a variety of end markets including automotive, general manufacturing, oil and gas, steel and concrete, power generation, as well as process industries such as chemical and pharmaceuticals.

We are continuing our transformation from a legacy cyclical industrial company to a top-tier, secular growth, intelligent motion solutions company.

In accordance with our strategic framework, we are building out the Columbus McKinnon Business System ("CMBS") and growth framework to be market-led, customer-centric and operationally excellent with our people and values at the core.

Our Transformation

Building on 150 years of industry experience, Columbus McKinnon has transformed into a scaled provider of material handling solutions with a broad variety of offerings, including lifting, automation, linear motion, and precision conveyance.

Most recently the Company expanded into the precision conveyance sector, expanding our Total Addressable Market (“TAM”) and providing pathways for growth in a highly fragmented industry.

A foundation for our transformation is our Columbus McKinnon Business System ("CMBS") and growth framework to be market-led, customer-centric and operationally excellent with our people and values at the core.

With CMBS as the foundation, we are well positioned to execute our Core Growth Framework ("Framework") strategy.

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Initiatives include further developing commercial and product management competencies and improving our digital tools for a better, more efficient customer experience.

• Growing the Core is a path that is focused on taking greater market share, both organically and through acquisitions, within our SAM.

• Growing the Core is a path that is focused on increasing market share, both organically and through acquisitions, within our SAM.

We are making progress on this path with product localization, new product development and advancements in automation and aftermarket support for our distributors.

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Here we expand beyond our SAM into the broader Total Addressable Market (“TAM”).

This involves building out our presence both geographically and in new verticals with expanded offerings, which we expect to be accomplished organically as well as with selective acquisitions.

This involves building out our presence both geographically and in new verticals with expanded offerings, which we expect to accomplish organically as well as with selective acquisitions.

• Reimagining the Core is a more transformational path that rethinks our TAM and targets strategic expansion beyond our existing TAM.

As we think more broadly about material handling and increasing trends in intelligent motion, not just lifting, but solutions for how materials move throughout customer environments, there are some compelling ideas that emerge.

The acquisitions of our conveyor businesses is an example of reimagining Columbus McKinnon’s core, which added approximately $5 billion to our TAM, with the specialty conveying microsegment growing at an estimated 6% to 8% rate annually.

The acquisitions of our conveyor businesses is an example of reimagining Columbus McKinnon’s core,

which added approximately $5 billion to our TAM, with the specialty conveying microsegment growing at an estimated 6% to 8% rate annually.

In fiscal 2022, the Company expanded into the precision conveyance sector with its acquisitions of Dorner Mfg.

("Dorner") and Garvey Corporation ("Garvey") followed by its acquisition of montratec GmbH (“montratec”) in fiscal 2024.

Columbus McKinnon’s precision conveyance platform provides leading automation solutions with unique, patented technologies in the design, application, manufacturing and integration of high-precision conveying systems.

Specifically:

• Dorner is a leading supplier to the stable life sciences, food processing, and consumer packaged goods markets as well as the higher growth industrial automation and e-commerce sectors.

The addition of Dorner has provided attractive complementary adjacencies to the Company.

• Garvey is a leading accumulation systems solutions company providing unique, patented systems for the automation of production processes whose products complement those of Dorner.

• montratec is a leading supplier of asynchronous conveying technology in the precision conveyance sector.

montratiec provides automation solutions by designing and developing intelligent automation and transport systems for interlinking industrial production and logistics processes.

montratec product offerings compliment the previous acquisitions of both Dorner and Garvey.

Together, our acquisitions within the precision conveyance industry established a platform for growth organically as well as through further acquisitions as the industry is highly fragmented.

On February 10, 2025, the Company announced that it had entered into a definitive agreement to acquire Kito Crosby Limited (“Kito”) (the “Kito Acquisition”).

The Kito Acquisition closing is subject to certain conditions, including regulatory approval as required by the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”) and other customary closing conditions described in the stock purchase agreement entered into by the Company and Kito in connection with the Kito Acquisition.

The Kito Acquisition is expected to meaningfully improve the Company's scale, enhance our collective geographic reach, significantly expand our lifting securement and consumables portfolio and enhance our customer value proposition.

With global engineering, manufacturing, distribution, and operations, Kito provides a broad range of products and solutions for the most demanding applications.

Kito’s people, products, solutions, and service have innovated the lifting and securement industry throughout its long history.

Kito's iconic brands include Kito, Crosby, Harrington, Gunnebo Industries, and Peerless.

We expect that the Kito Acquisition will strengthen our core lifting business and further the Company's position as a leading worldwide, designer, manufacturer and marketer of intelligent motion solutions that move the world forward and improve lives by efficiently and ergonomically moving, lifting, positioning and securing materials.

The Company anticipates the Kito Acquisition to close during fiscal 2026.

We intend to fund the acquisition through a combination of committed debt financing of $3,050,000,000 from J.P.

Morgan Securities, LLC including a $500,000,000 revolving credit facility and $800,000,000 of perpetual convertible preferred equity investment from Clayton, Dubliner & Rice (“CD&R”).

Terms of the CD&R investment include a 7% coupon, payable in cash or payment-in-kind at Columbus McKinnon’s option, and a conversion price of $37.68, resulting in CD&R as-converted ownership of approximately 43% of the Company following completion of the transaction.

CD&R has agreed to a customary lock-up on its shares.

Business Description

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and power and motion control systems, such as AC and DC drive systems, radio remote controls, push button pendant stations, brakes, and collision avoidance and power delivery subsystems.

Our legacy Lifting business is cyclical in nature and sensitive to changes in general macro economic conditions, including changes in industrial capacity utilization, industrial production, and general macro economic activity indicators, like GDP growth.

Our legacy Lifting business is sensitive to changes in general macro-economic conditions, including changes in industrial capacity utilization, industrial production, and general macro-economic activity indicators, like GDP growth.

Our products are typically manufactured for stock or assembled to order from standard components and are sold primarily through a variety of commercial distributors and, to a lesser extent, directly to end-users.

Our STAHL subsidiary brings market leadership with independent crane builders and EPC firms.

The diverse end-users of our products are in a variety of industries including manufacturing, power generation and distribution, utilities, wind power, warehouses, commercial construction, oil and gas exploration and refining, petrochemical, marine, ship building, transportation and heavy-duty trucking, agriculture, logging and mining.

logging and mining.

We also serve a niche market for the entertainment industry, including permanent and traveling concerts, live theater, and sporting venues.

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The acquisitions of Dorner and Garvey expand the Company's reach to include the stable life sciences, food processing and consumer packaged goods markets and high growth industrial automation and e-commerce sectors.

montratec’s principal markets include aerospace and electric vehicle production amongst others.

montratec’s principal markets include aerospace and electric vehicle battery cell production amongst others.

Of our fiscal 2025 sales, $537,549,000, or 56%, were U.S.

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Below-the-hook tooling, textile, and chain slings and associated forgings, and clamps are specialized lifting apparatus used in a variety of lifting activities performed in conjunction with hoisting or lifting applications.

We recently announced that along with a strategic partner we have developed a cutting-edge battery hoist.

Last year, the Company announced that along with a strategic partner we have developed a cutting-edge battery hoist.

Combining our industry-leading hoist design with our partner's expertise in lithium-ion battery and brushless motor technology, the innovative BatteryStar™ hoist provides the lifting strength and speed of an electric chain hoist and the portability of a manual hoist without the need for time-consuming manual operation or access to a power source.

The BatteryStar hoist has a 1-metric-ton lifting capacity with 20 feet of lift as standard and lifting speeds of 8 feet per minute.

The hoist will be available for sale beginning in fiscal 2025.

We also manufacture explosion-protected hoists and custom engineered hoists, including wire rope and manual and electric chain hoists.

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These products offer customers high quality and reliable solutions that enhance productivity and profitability.

The Company’s most recent acquisition, montratec, provides asynchronous conveying solutions, which complements both Dorner and Garvey product offerings.

The montratec acquisition provides asynchronous conveying solutions, which complements both Dorner and Garvey product offerings.

This furthers our shift to intelligent motion solutions and provides capabilities in advanced, higher technology automation solutions.

Digital Power Control and Delivery Systems - Through our Magnetek brand, we are a leading provider of innovative power control and delivery systems and solutions for overhead material handling applications used in a number of diverse industries, including aerospace, automotive, steel, aluminum, paper, logging, mining, ship loading, nuclear power plants, and heavy movable structures.

We are a major supplier in North America of power and motion control systems, which include AC and DC drive systems, radio remote controls, push button pendant stations, brakes, and collision avoidance and power delivery subsystems.

While we sell primarily to original equipment manufacturers ("OEMs") of overhead cranes and hoists, we engage with end users to understand their needs and gain specification.

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— Entertainment equipment distributors that design, supply, and install a variety of material handling and rigging equipment for concerts, theaters, ice shows, sporting events, convention centers, and night clubs.

Service-After-Sale Distribution Channel - Service-after-sale distributors include our authorized network of 22 chain repair service stations and over 229 certified hoist service and repair stations globally.

Service-After-Sale Distribution Channels - Service-after-sale distributors include our authorized network of 17 chain repair service stations and over 229 certified hoist service and repair stations globally.

This service network is designed for easy parts and service access for our large installed base of hoists and related equipment in that region.

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Orders for products that are manufactured to customer specifications are generally shipped within four to twelve weeks.

In fiscal 2024, the Company made significant progress reducing past-due backlog to more normal levels.

In addition, fluctuations in backlog can reflect the project-oriented nature of certain aspects of our business.

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Other important factors include distributor relationships and territory coverage as well as the robustness of our digital tools which impacts the customer experience.

Major competitors for hoists are Konecranes, and Kito (and its U.S.

subsidiary Harrington) which recently merged with the Crosby Group;

for chain are Campbell Chain, Peerless Chain Company (a U.S.

subsidiary of Kito), and American Chain and Cable Company;

for digital power control systems are Konecranes, Power Electronics International, Inc., Cattron Holdings (a division of Harbour Group), Conductix-Wampfler (a division of Delachaux Group), Control Techniques (a division of Nidec Corporation), OMRON Corporation, KEB GmbH, and Fujitec;

for forged attachments are The Crosby Group, Brewer Tichner Company and Chicago Hardware and Fixture Company;

for actuators and rotary unions are Deublin, Joyce-Dayton, and Nook Industries, a division of Altra Industrial Motion Corp., which was acquired by Regal Rexnord;

and for precision conveyors and accumulators are FlexLink, Bosch Rexroth AG, MK North America, Inc., Duravant, Nercon Eng.

Major competitors for hoists are Konecranes (and its subsidiaries Demag, R&M, Verlinde, SWF), GH, Detroit Hoists, ACE World Companies, Abus, Kito (and its U.S.

subsidiary Harrington), Lifket/ChainMaster, Jet, AMH, Elephant, Ingersoll Rand, Tractel and Street.

Major competitors for chain are Campbell Chain, Kito (and its subsidiaries Gunnebo and Peerless), Pewag Chain, Laclede Chain Manufacturing, and American Chain and Cable Company.

Major competitors for digital power control systems are Konecranes, Power Electronics International, Inc., Cattron Holdings (a division of Harbour Group), Conductix-Wampfler (a division of Delachaux Group), Control Techniques (a division of Nidec Corporation),

OMRON Corporation, KEB GmbH, and Fujitec.

Major competitors for forged attachments are Kito (and its subsidiaries Gunnebo and Peerless), Campbell Chain, Laclede Chain Manufacturing, Van Beest, Pewag, RUD, AMH Cartec, Yoke, Brewer Tichner Company and Chicago Hardware and Fixture Company.

Major competitors for actuators and rotary unions are Deublin, Joyce-Dayton, and Nook Industries, a division of Altra Industrial Motion Corp., which was acquired by Regal Rexnord.

Major competitors for precision conveyors and accumulators are FlexLink, Bosch Rexroth AG, MK North America, Inc., Duravant,

Inc and Arrowhead Systems, which was acquired by Regal Rexnord.

As discussed herein, the Company announced the Kito Acquisition in February 2025 and expects the Kito Acquisition to close in fiscal 2026.

Human Capital Management

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At March 31, 2025, we had 3,478 employees globally.

Approximately 6% of our employees are represented under two separate U.S.

collective bargaining agreements that expire in September 2024 and May 2027.

We also have various labor agreements

with our non-U.S.

Approximately 3.7% of our employees are represented under one U.S.

collective bargaining agreement that expires in May 2027.

We also have various labor agreements with our non-U.S.

employees that we negotiate from time to time.

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We believe the risk of employee or union led disruption in production is remote.

Successful execution of our strategy is dependent on attracting, developing, and retaining key employees and members of

our management team, which we achieve through the following:

Our employees are our most significant assets, critical to the delivery of our transformation and our continued strategic progress.

Successful execution of our strategy is dependent on attracting, developing, and retaining key employees and members of our management team, which we achieve through the following:

• We always begin with people and values at the center of all that we do and at the heart of our corporate social responsibility efforts.

The Company’s people and the behaviors they display define our success, including integrity, respect and teamwork.

Many of our Human Capital Management priorities, including Occupational Health and Safety, Succession and People Development, Diversity and Equal Opportunity, and Local Communities, are directly connected to our commitment to people and values.

Many of our Human Capital Management priorities, including Occupational Health and Safety, Succession and People Development, Culture & Respect, and Local Communities, are directly connected to our commitment to people and values.

Our people enable us to grow, and our values ensure we grow responsibly and sustainably.

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For fiscal 2025 and 2024, the Company had an overall safety incident rate of 0.54 and 0.71, respectively (number of injuries and illnesses multiplied by 200,000, divided by hours worked).

• We are committed to embracing diversity, equity and inclusion and integrating it into our business.

We know the positive impact diverse and inclusive teams have on our business, employees, customers, and communities around the world.

We are dedicated to building a company that future generations can be proud of and a team that embraces diversity and appreciates differences across the enterprise.

We have embedded diversity, equity and inclusion into the People and Values framework of the CMBS.

We are committed to ensuring that we have an environment of inclusion.

We launched a series of virtual training modules for employees that provides education around diversity, inclusion and unconscious bias.

One of our core values is “Win as a team” to specifically address embracing diversity.

• We have built an open culture where great people have the opportunity to achieve their full potential.

We are committed to creating an environment that embraces diverse perspectives, knowing the positive impact it has on our business, customers, and the communities we serve.

We want to build a company that future generations can be proud of where all associates are encouraged to achieve their career goals through ongoing development and objective performance management and promotion processes that recognize results regardless of age, background, race, ethnicity, ability, religion, gender or sexual orientation.

As such, our “We Are CMCO” approach to culture and inclusion ensures that we continue to do the work to make sure the Company remains stable and our employees feel safe, supported, and valued.

We also recognize our corporate responsibility to advance our Environmental Social and Governance (“ESG”) efforts and to be accountable for making progress.

We are making investments in our people, processes and systems to enable meaningful progress in areas including, but not limited to, environmental stewardship, employee safety, workplace diversity and inclusion, connecting with our communities, and ensuring a strong governance and risk management culture.

We are making investments in our people, processes and systems to enable meaningful progress in areas including, but not limited to, environmental stewardship, employee safety, workplace inclusion, connecting with our communities, and ensuring a strong governance and risk management culture.

We are taking deliberate steps to fully integrate ESG into our enterprise strategy, our business system, and our daily actions.

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and standard variable drives.

We purchase most of these raw materials and components from a limited number of strategic and preferred suppliers under agreements that are negotiated on a Company-wide basis through our global purchasing group.

We purchase most of these raw materials and components from a limited number of strategic and

preferred suppliers under agreements that are negotiated on a Company-wide basis through our global purchasing group.

Generally, as we experience fluctuations in our costs, we are able to reflect these increases in costs with additional price increases to our customers with the goal of being margin neutral.

We own or have the rights to use certain trademarks, service marks and trade names that are registered with the U.S.

Patent and Trademark Office.

Trademarks that are important in identifying and distinguishing our products include, but are not limited to, Hammerloks™ and Herc-Alloy™.

We also own domain names, including our website, www.cmco.com.

We believe that our rights in our intellectual property, including trademarks and domain names, as well as contractual provisions and restrictions on access to our proprietary technology, are important to our marketing efforts to develop brand recognition and differentiate our brand from our competitors.

We own a number of trademarks that have been registered, or for which registration applications are pending, in the United States and certain foreign jurisdictions.

These trademarks include, but are not limited to, Hammerloks™ and Herc-Alloy™.

The current registrations of these trademarks are effective for varying periods of time and may be renewed periodically, provided that we, as the registered owner, or our licensees where applicable, comply with all applicable renewal requirements including, where necessary, the continued use of the trademarks in connection with similar goods.

We expect to pursue additional trademark registrations to the extent we believe they would be beneficial and cost-effective.

In addition to trademark protection, we own domain names, including www.cmco.com.

We also enter into, and rely on, confidentiality and proprietary rights agreements with our employees, consultants, contractors and business partners to protect our trade secrets, proprietary technology, and other confidential information.

We further control the use of our proprietary technology and intellectual property through provisions in both our customer terms of use on our website and in our vendor terms and conditions.

Environmental and Other Governmental Regulation

Like most manufacturing companies, we are subject to various federal, state, and local laws relating to the protection of the environment.

Like most manufacturing companies, we are subject to various federal, state, and local laws intended to protect public health, natural resources, and the environment.

To address the requirements of such laws, we have adopted a corporate environmental protection policy which provides that all of our owned or leased facilities must comply, and all of our employees have the duty to comply, with all applicable environmental regulatory standards, and we have initiated an environmental auditing program for our facilities to ensure compliance with such regulatory standards.

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Available Information

Our internet address is www.cmco.com .

We make available free of charge through our website our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, as soon as reasonably practicable after such documents are electronically filed with, or furnished to, the SEC.

Our internet address is www.cmco.com and our investor relations website is investors.cmco.com.

We promptly make available on our investor relations website, free of charge, the reports that we file or furnish with the SEC, corporate governance information, and select press releases.

We file Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, proxy and information statements and amendments to reports filed or furnished pursuant to Sections 13(a), 14, and 15(d) of the Exchange Act.

The SEC maintains a website at www.sec.gov that contains reports, proxy and information statements and other information regarding Columbus McKinnon and other issuers that file electronically with the SEC.

The content on any website referred to in this Form 10-K is not incorporated by reference into this Form 10-K, and such content should not be considered part of this Form 10-K, unless expressly noted otherwise.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business