Garvey is a leading accumulation systems solutions company that provides unique, patented systems for automating production processes with ~$30M in revenue and $9M in adjusted EBITDA for TTM ended September 30, 2021.
Columbus McKinnon (NASDAQ:CMCO) intends on financing the acquisition by borrowing $75M utilizing the accordion option under its existing Term Loan B. The additional borrowings are expected to result in a pro forma net debt leverage ratio of ~2.8x.
The acquisition is expected to be ~$0.05 accretive to GAAP diluted EPS in fiscal 2023. The company expects cost synergies of 2% of revenue over two years.
The transaction is expected to close before the end of 2021.