Crosby Group to Acquire Kito Corporation
The Crosby Group, global leader in rigging and lifting, have announced that they will combine their business with those of the Japanese material handling manufacturer, KITO Corporation.
The Crosby Group will acquire all of the outstanding KITO shares at a premium of 64.3% Fridays’s close price, namely JPY2,725 per share. The offer is expected to be completed by the end of 2022 Q2. Both companies will continue to trade as independent companies until completion of the acquisition.
The Parties believe that the combination of the two companies would provide more stable operational resources and flexibility to help manage these dynamic headwinds in the form of capital to invest in the business after the Business Combination , sharing practices from each of the companies of Crosby Group and KITO Group to ensure even better safety practices, and product innovation and sharing of ideas by employees, positioning the combined company to be better equipped to serve customers, employees, and communities in the face of supply chain challenges and inflationary pressures. As a result, the Parties believe that the Combined Group would be able to maintain better quality created from sharing manufacturing practices and achieve better customer service from sharing talent and greater combined experience with servicing customers than the Parties could achieve on their own.
Both parties believe that the Combined Group would likely be able to utilize their complementary capabilities in new product development to create innovations for new and 3 existing customers of the Parties. Specifically, KITO Group has expertise in crane applications and Crosby Group has expertise in rigging hardware applications (meaning hardware attached to products for use in ensuring safety and in lifting and hoisting), which are complementary product areas within the lifting and securement hardware industry.
Source Crosby group / KITO Corporation / BridgerHowes