SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission file Number 0-27618
Date of Report (Date of earliest event reported) March 11, 1998
COLUMBUS McKINNON CORPORATION
(Exact name of registrant as specified in its charter)
NEW YORK 16-0547600
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
140 JOHN JAMES AUDUBON PKWY., AMHERST, NY 14228-1197
(Address of principal executive offices) (Zip Code)
(Registrant's telephone number, including area code)
(716) 689-5400
NOT APPLICABLE
(Former name, former address and former fiscal year,
if changed since last report)
Page 1 of 3
Exhibit Index is on page 2
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Item 5. Other Events
On March 11, 1998, Columbus Mckinnon Corporation issued
the attached press release with respect to its definitive
agreement to purchase all of the outstanding stock of LICO, Inc.
for approximately $155.0 million in cash.
Item 7. (c) Exhibits
(99) Text of press release dated March 11, 1998.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be
signed on behalf of the undersigned hereunto duly authorized.
COLUMBUS McKINNON CORPORATION
Date: March 23, 1998 By /s/ Robert L. Montgomery
Robert L. Montgomery, Jr.
Executive Vice President and
Chief Financial Officer
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Exhibit 99
NEWS RELEASE
CONTACT:
Robert L. Montgomery, Jr.
Executive Vice President and
Chief Financial officer
Columbus McKinnon Corporation
716-689-5405
COLUMBUS McKINNON CORPORATION
ACQUIRING LICO, INC. - LEADING MATERIAL
HANDLING SYSTEMS PROVIDER
The Acquisition of LICO, Together with its January Acquisition
of Univeyor A/S, will Establish Columbus McKinnon as a
Significant Presence in the Global Integrated Material
Handling Systems Market
AMHERST, N.Y., March 11, 1998 -- Columbus McKinnon
Corporation (Nasdaq-NNM: CMCO) today announced it has entered
into a definitive agreement to purchase all of the outstanding
stock of LICO, Inc. for approximately $155.0 million in cash.
LICO, through its main operating subsidiary, Automatic
Systems, Inc. ("ASI"), is a leading designer, manufacturer, and
installer of technically advanced material handling systems
including overhead and floor-mounted conveyors, electrified
monorail systems, robotic indexing systems, and automatic body
transfer systems primarily for the automotive industry. Based in
Kansas City, Missouri, ASI provides custom engineered systems by
functioning either as a turnkey contractor or as a supplier
working in conjunction with the customer's general contractor.
"The acquisition of LICO and our January acquisition of
Univeyor represent major components of CM's strategy of becoming
an important provider of integrated material handling systems.
We believe these acquisitions position CM to take advantage of
important general industry trends including outsourcing the
design and implementation of work flow and material handling
systems by manufacturing and distribution companies worldwide,"
said CM Chairman and Chief Executive Officer Herb Ladds.
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LICO Acquisition
Page Two
"LICO's experience with overhead and floor-mounted
conveyors and electrified monorail systems, Univeyor's expertise
with roller conveyors and electronic control systems, and CM's
existing manipulators, lift tables, air balancers, and light-rail
trolleys and hoists, will enable us to provide an integrated
material handling solution best suited to the customer's specific
application requirements," said Tim Tevens, President and Chief
Operating Officer.
He added, "The acquisitions of LICO and Univeyor
reflect CM's strategy for growth from the addition of new
products that leverage our existing leading market position in
the global material handling industry. We seek growth
opportunities through synergistic acquisitions and increased
international market penetration and presence. We also believe
that these acquisitions provide established platforms for
increasing CM's sales of other products into automotive and
industrial manufacturing markets."
The strong management team at LICO, led by Robert A.
Hoehn, President, is expected to remain intact following the
acquisition.
CM expects to use the proceeds from its new $300
million senior bank revolving line of credit and a debt financing
to finance the acquisition of LICO and to repay existing bank
debt.
CM is a broad-line designer, manufacturer, and supplier
of material handling products and integrated material handling
systems widely used by industrial end users and consumers. Its
chain and wire rope hoists, alloy and high strength carbon steel
chain, forged accessories and other products are sold in a large
number of domestic and international markets.
Supplemental information regarding the LICO and
Univeyor A/S acquisitions is available on CM's Web site at
http://www.cmworks.com/
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LICO Acquisition
Page Three
LICO PROFILE
Location:
Kansas City, MO
Organization:
LICO, Inc. (holding company)
Automatic Systems, Inc. (automated material handling
systems)
LICO Steel, Inc. (steel erection and general
construction)
LICO Conveyor Company (belt conveyor systems)
Automatic Systems Conveyors, Ltd. (Canada)
ASI of Australia Pty. Ltd. (Australia)
Employees:
Approximately 275
Business:
Design, manufacture and installation of custom conveyor and
technically advanced material handling systems, primarily
for the automotive industry and, to a lesser extent, the
steel, construction, foundry and other industrial markets.
LICO's products include overhead conveyors, floor-mounted
conveyors, electrified monorail systems, robotic indexing
systems, and automatic body transfer systems.
Customers Include:
General Motors, Ford Motor Company, Saturn, Harley Davidson,
American Steel and Wire, JICase, and John Deere, among
others
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LICO Acquisition
Page Four
Results for periods ended December 31, 1997:
Latest twelve months:
Sales - $137.5 million
Net income - $5.7 million
Latest quarter:
Sales - $50 million
Net income - $3.2 million
Sales Backlog:
$147.7 million as of fiscal year ended September 30, 1997,
up from $86.8 million the year before
STRATEGIC RATIONALE FOR LICO ACQUISITION
Strengthens the Company's position as a leader in providing
project design, management and implementation of integrated
material handling systems
Provides continued growth opportunities as a result of the
current trend of industrial companies to outsource material
handling project design and implementation
Complements CM's recent acquisition of Univeyor A/S, a
leading international supplier of turnkey integrated material
handling systems with the majority of its sales in Europe, and
CM's related individual work station material handling design
expertise in the United States
Provides an established platform for increasing sales of
other CM material handling products into the automotive and
industrial manufacturing markets
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