Columbus McKinnon, a designer, manufacturer and marketer of material handling products, technologies and services, reached an agreement to purchase STAHL CraneSystems, a business of Konecranes.

STAHL is a manufacturer of explosion-protected hoists and crane components known for its custom engineering of lifting solutions and hoisting technology. STAHL serves independent crane builders and Engineering Procurement and Construction (EPC) firms, providing products to a variety of end markets including automotive, general manufacturing, oil and gas, steel and concrete, power generation and process industries such as chemical and pharmaceuticals.

Konecranes is divesting STAHL as a result of the European Union anti-trust review related to its pending acquisition of Terex’s Material Handling & Port Solutions business.

The all-cash transaction value for the acquisition is €224 million ($240 million) with an earn-out potential up to €230 million ($246 million), if certain earnings goals are met for calendar year 2016. J.P. Morgan Chase committed financing for the transaction and for the restructuring of current debt. The financing will be structured as senior secured debt up to $570 million including a new $75 million revolver. The borrowings will fund the acquisition, certain fees and expenses incurred in connection with the transaction and repay outstanding balances on the company’s current revolving credit facility and term loan.

The acquisition is expected to close between January 31, 2017 and April 30, 2017. The closing is subject to European Commission approval, the successful closing of the pending acquisition of certain Terex subsidiaries by Konecranes, and other customary conditions.

Timothy T. Tevens, president and CEO of Columbus McKinnon, commented, “We have long viewed STAHL as an ideal complement to Columbus McKinnon EMEA, as well as an excellent expansion of our global product offering. Their strong position with wire rope and electric chain hoists in Europe immediately complements our leadership of handheld hoists in that region, and their broad portfolio of ATEX certified explosion-protected products serving the mining, oil and gas and chemical processing industries significantly extends our global offerings in capability and capacities.”