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An announcement from Columbus Mckinnon ( (CMCO) ) is now available.
On January 13, 2026, Columbus McKinnon signed an equity purchase agreement to sell 100% of the equity interests of Royal NY Company Holdings and its U.S. power chain hoist and chain manufacturing operations, excluding Little Mule products, to an affiliate of Pacific Avenue Capital Partners for $210 million, with potential additional earn-out payments of up to $25 million tied to net sales performance in fiscal 2027 and 2028. The divested business, based in Damascus, Virginia and Lexington, Tennessee, will be transferred under related contribution agreements, with closing expected by the end of the first quarter of calendar 2026, subject to customary regulatory and contractual closing conditions and a long-stop date of April 30, 2026. Columbus McKinnon expects roughly $160 million of net cash proceeds, after an estimated $50 million of taxes and transaction-related costs, to be used primarily to pay down debt incurred for its previously announced acquisition of Kito Crosby, thereby supporting its deleveraging priorities and easing antitrust review by reducing product overlap. Management positions the divestiture and acquisition together as a portfolio simplification and scale-building strategy, targeting approximately $70 million in annual cost synergies, mid‑20% adjusted EBITDA margins on a pro forma basis, and stronger, more diversified global reach, particularly in APAC, EMEA and Latin America, even as they caution that transaction timing could render fiscal 2026 GAAP earnings per share temporarily dilutive and near-term financial impacts uncertain.
The most recent analyst rating on (CMCO) stock is a Buy with a $21.50 price target. To see the full list of analyst forecasts on Columbus Mckinnon stock, see the CMCO Stock Forecast page.
Spark’s Take on CMCO Stock
According to Spark, TipRanks’ AI Analyst, CMCO is a Outperform.
Columbus McKinnon exhibits a stable financial position with strong technical momentum and positive earnings call sentiment. However, the high P/E ratio suggests potential overvaluation, and profitability challenges remain. The company’s strategic initiatives and operational improvements provide a positive outlook, but tariff impacts and regional order slowdowns pose risks.
To see Spark’s full report on CMCO stock, click here.
More about Columbus Mckinnon
Columbus McKinnon Corporation, based in Charlotte, North Carolina and listed on Nasdaq as CMCO, is a leading designer, manufacturer and marketer of intelligent motion solutions for material handling applications. The company focuses on lifting and motion control products and systems serving diverse end markets worldwide, and is in the process of significantly expanding its scale and global reach through the planned acquisition of Kito Crosby Limited.
Average Trading Volume: 273,531
Technical Sentiment Signal: Sell
Current Market Cap: $565.4M
See more insights into CMCO stock on TipRanks’ Stock Analysis page.