The Crosby Group and Kito Corp. merge, form Kito Crosby

The Crosby Group, Richardson, Texas, a provider of lifting and rigging solutions, and Japan-based Kito Corp., a leading manufacturer of material handling equipment with 90 years of experience in the development and production of hoists and cranes, have announced the completion of their business combination.

The new company will be called Kito Crosby and bring together two industry-leading firms with complementary geographic footprints and product portfolios will better serve customers, team members and their global communities. The combined company will invest in its people, products and facilities to advance innovative solutions for customers, who will benefit from expanded service, support and training.

“I am thrilled to announce we have completed the business combination of The Crosby Group and Kito Corporation to form Kito Crosby, a global provider of comprehensive lifting solutions,” says Kito Crosby CEO Robert Desel, formerly the CEO of The Crosby Group. “Together, our highly complementary product portfolios and mutual commitments to safety, reliability and innovation will create exceptional value for our customers and other stakeholders. I am honored to be leading this organization and its 4,000 team members around the world to bring together two amazing businesses with rich traditions and histories.”

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The Crosby Group’s brands include Crosby, Gunnebo Industries, Crosby Straightpoint, Crosby BlokCam, Crosby Airpes, ACCO, McKissick, Crosby Feubo, Trawlex, Lebus, Speedbinders and CrosbyIP.

Since its founding in 1932, Kito Corp. has been a leading manufacturer of material handling equipment, including brands such as Kito, Harrington, Peerless, Jiangyin, Erikkila, Van Leusden, KITO Weissenfels, SCC and Fall Safe.

“This combination represents significant value creation for our customers, employees, shareholders, and communities,” says Kito Crosby Board Chairman Yoshio Kito, who used to be the president and CEO of Kito Corp. “We are excited to continue growing as a combined business and to develop incremental opportunities for our existing and new customers across the world with expanded product offerings and solutions, while maintaining the same support and commitment they have come to expect.”

Kito Crosby team members will be participants in the employee ownership program.

“We firmly believe that everyone contributes to the success of the company and should benefit from their efforts,” Desel says.

The announcement followed the settlement of The Crosby Group’s cash tender offer for all outstanding shares of Kito Corp. for JPY 2,725 ($20.92) per share and the completion of the company’s removal from the Tokyo Stock Exchange.

SMBC Nikko served as the tender offer agent as well as lead financial advisor. Mizuho Securities USA LLC acted as a financial advisor, and Kirkland & Ellis LLP and Mori Hamada & Matsumoto acted as legal advisors for The Crosby Group. Debt financing is being provided by UBS Investment Bank, KKR Capital Markets, Sumitomo Mitsui Banking Corporation, Mizuho Bank and ING Capital. Nomura acted as financial advisor, and Nishimura & Asahi acted as legal advisor for Kito Corp.