Private equity giant KKR plans to sell machinery manufacturer Kito Crosby at a valuation of $3 billion

According to sources familiar with the matter, private equity giant KKR (KKR.US) is considering selling the machinery manufacturer Kito Crosby and is working with an advisor to conduct an auction process. One source revealed that KKR is seeking a valuation of around $3 billion for Kito Crosby, with the machinery manufacturer's earnings before interest, taxes, depreciation, and amortization (EBITDA) at approximately $250 million, expecting a valuation of up to 13 times this figure (i.e. $3.25 billion).

Kito Crosby sells a range of products and services, including lifting, rigging, transportation, and safety operations for industries ranging from oil and gas to food processing, with brands such as Crosby, Harrington, and Peerless. Sources indicate that Kito Crosby is expected to attract interest from other sponsors and industry peers. They added that KKR has not made a final decision on the sale and may choose to retain Kito Crosby.

KKR initially invested in Crosby Group in 2013, acquiring the Crosby Group from Melrose Industries and Acco Materials Handling Solutions for $1 billion. Subsequently, KKR led the privatization of Kito in 2023 and merged these businesses into Kito Crosby. Like many companies invested in by KKR, Kito Crosby also has an employee stock ownership plan, allowing its 4,000 employees to share in the proceeds of any future sale