Columbus McKinnon Completes Sale of Larco Industrial Services, Ltd.
AMHERST, N.Y., March 5 -- Columbus McKinnon Corporation (NASDAQ:CMCO), a leading designer, manufacturer and marketer of material handling products, today announced the sale of Larco Industrial Services, Ltd. (Larco), the Canadian subsidiary of the Company's wholly owned subsidiary Crane Equipment & Service, Inc. (CES). Larco, a manufacturer and servicer of large capacity overhead cranes based in Stoney Creek, Ontario, was sold to Canadian Overhead Handling Inc. (COH) of Montreal, Quebec. The net proceeds of the Larco sale will be used for debt reduction and general operating purposes.
The sale will not have a material impact on Columbus McKinnon's financial results for its fiscal 2007 fourth quarter which ends on March 31, 2007. For the latest 12 months, Larco contributed revenue of approximately $10 million and operated near breakeven.
Timothy T. Tevens, Columbus McKinnon President and Chief Executive Officer commented, "Given its narrowly focused product line and market, Larco was not an essential strategic fit with our CES business which is focused on growth in the United States and other global markets. Larco will be better positioned for growth under its new owners based on their leadership position in Canada as a manufacturer of large specialty cranes."
COH will continue to operate the business as Larco Industrial Services, Ltd. with facilities in Stoney Creek and Cambridge, Ontario and plans to retain Larco's employees. Under its new ownership, Larco will continue to be a key distributor of the various Columbus McKinnon brand products in Southern Ontario.
About Columbus McKinnon
Columbus McKinnon is a leading worldwide designer, manufacturer and marketer of material handling products, systems and services, which efficiently and ergonomically move, lift, position or secure material. Key products include hoists, cranes, chain and forged attachments. The Company is focused on commercial and industrial applications that require the safety and quality provided by its superior design and engineering know-how. Comprehensive information on Columbus McKinnon is available on its web site at www.cmworks.com/
Source: Columbus McKinnon Corporation
CONTACT:
Karen L. Howard,
Vice President - Finance and Chief Financial Officer of Columbus McKinnon Corporation,
+1-716-689-5550,
karen.howard@cmworks.com
Web site: www.cmworks.com/
