Lifting and rigging company The Crosby Group said it will combine its business with the KITO CORPORATION, a Japan-based material handling manufacturer with 90 years of experience in the development and production of hoists and cranes.
The combination will occur through a cash tender offer by The Crosby Group to acquire all the outstanding shares of KITO CORPORATION for JPY 2,725 ($21.35 USD) per share, which represents a premium of 64.3% compared to KITO CORPORATION’s undisturbed closing price on May 13, and a 61% premium to KITO CORPORATION’s three-month simple average closing price.
The tender offer is expected to be completed in the second half of this year, subject to “customary closing conditions including regulatory clearances from relevant authorities,” The Crosby Group said.
Until the deal closes, The Crosby Group and KITO CORPORATION will continue to operate as separate, independent companies, according to the official announcement.
“The combined company will be better resourced, and ultimately better positioned to serve customers, team members, and communities globally through additional investment in products, people, and facilities,” The Crosby Group said in a statement. “The combination will further foster innovation and enable customers to benefit from a broader portfolio of products across a global landscape as well as increased levels of service, support, and training. Additionally, the parties’ geographically complementary operations have the potential to accelerate growth through an expanded and diversified geographic footprint.”