Columbus McKinnon (CMCO) Sidoti March Small-Cap Virtual Conference summary

Strategic overview and acquisition rationale

• Completed $2.7 billion acquisition of Kito Crosby, doubling revenue to over $2 billion and targeting EBITDA margins in the low-20s.

• Strategic business combination with Kito Crosby increases scale, enhances financial performance, and creates significant synergy opportunities.

• Kito Crosby adds higher Asia-Pacific exposure, recurring revenue streams, and complementary product portfolios, enhancing scale and competitiveness.

• Integration teams from both companies are collaborating well, with early wins in cost synergies and cultural alignment.

• Leadership team blends expertise from both legacy organizations to drive integration and future growth.

Financial targets and synergy realization

• Committed to $70 million net cost synergies over three years, with 20% expected in year one, 60% in year two, and full realization in year three.

• Gross cost synergies targeted at $80 million, offset by $10 million in ongoing dis-synergies for public company compliance.

• Integration costs estimated at $15 million over three years, front-loaded in the first year.

• Free cash flow conversion exceeded 100% in the latest period, supporting debt reduction and capital allocation priorities.

• Net leverage expected to fall below 4x by fiscal 2028, with a long-term goal of less than 2x.

Financial performance and targets

• Achieved $2.0B in net sales with over 7,000 employees and presence in 70+ countries.

• Pro forma adjusted EBITDA margin at 22.0% for the trailing twelve months ended September 30, 2025.

• Adjusted gross margin for the combined entity at 36.1% for the same period.

• All free cash flow, aside from an $8 million annual dividend, will be used to pay down debt, with flexible capital structure enabling rapid deleveraging.

• $70M in annual net run rate cost synergies expected over three years.