Columbus McKinnon Corp. has reached an agreement to raise $47.2 million by selling additional shares of the Amherst material handling equipment maker's stock to help pay for its acquisition of a German hoist maker.
The stock sale will help Columbus McKinnon reduce the amount of debt it takes on as a result of its $240 million deal announced earlier this month to buy Stahl Crane Systems.
The acquisition will make Columbus McKinnon the world's second-biggest hoist company and will expand the Amherst material handling equipment company's product line to include explosion-protected hoists and components used by miners, in oil and natural gas exploration and by the chemical processing industry.
The deal also will greatly increase Columbus McKinnon's debt load. Without the stock sale, which is expected to close around the same time as the Stahl acquisition, the company's total debt was expected to rise to just under $500 million in total debt, or about 60 percent of its total capitalization.