Digital-Power
Digital-Power, founded in the early 2020s, specializes in intelligent motion solutions for material handling, focusing on power chain hoists and chain manufacturing.
Profile
Provides intelligent motion solutions for material handling.
Digital-Power, founded in the early 2020s, specializes in intelligent motion solutions for material handling, focusing on power chain hoists and chain manufacturing. The company’s origins trace back to its Damascus, Virginia, and Lexington, Tennessee facilities, which have been central to its operations. In January 2026, Digital-Power entered a definitive agreement to sell its U.S. power chain hoist and chain manufacturing operations to Pacific Avenue Capital Partners for $210 million, with an additional earn-out potential of $25 million.
This divestiture aligns with Columbus McKinnon’s broader strategy to streamline its portfolio and focus on its acquisition of Kito Crosby, expected to close in Q1 2026. Digital-Power’s product portfolio includes advanced hoisting systems and chain manufacturing solutions, catering to industries requiring precise material handling. The company’s financial trajectory is marked by significant cash flow generation post-acquisition, aiming to reduce its Net Leverage Ratio below 4.0x by fiscal 2028. Digital-Power’s integration with Kito Crosby is expected to enhance its global reach and product offerings, positioning it as a key player in the material handling sector.
Who buys this
- Manufacturing companies
- Construction firms
- Warehousing and logistics providers
- Energy sector companies
Strengths and what to watch
Strengths
- Strong global presence with expanded product portfolio post-Kito Crosby acquisition
- Significant cash flow generation enabling debt reduction
- Expected $70 million annual net run rate cost synergies from integration
Watch for
- Integration risks with Kito Crosby acquisition
- Potential customer churn due to portfolio changes
- Regulatory hurdles in finalizing the Kito Crosby acquisition
Recent moves
Key Information
- Founded
- 2020
Frequently Asked Questions
What does Digital-Power specialize in?
Digital-Power specializes in intelligent motion solutions for material handling, focusing on power chain hoists and chain manufacturing. The company serves industries like manufacturing, construction, warehousing, and energy, providing advanced hoisting systems and precise material handling solutions.
Who are Digital-Power's primary customers?
Digital-Power’s primary customers include manufacturing companies, construction firms, warehousing and logistics providers, and energy sector companies. These industries rely on Digital-Power’s advanced hoisting systems and chain manufacturing solutions for efficient and precise material handling.
What is Digital-Power's financial strategy?
Digital-Power focuses on significant cash flow generation to reduce its Net Leverage Ratio below 4.0x by fiscal 2028. The company’s divestiture of U.S. power chain hoist operations and acquisition of Kito Crosby align with its strategy to streamline and expand its portfolio.
What are Digital-Power's strengths?
Digital-Power’s strengths include a strong global presence, expanded product portfolio post-Kito Crosby acquisition, and significant cash flow generation enabling debt reduction. The company also expects $70 million annual net run rate cost synergies from its integration efforts.
What challenges does Digital-Power face?
Digital-Power faces integration risks with the Kito Crosby acquisition, potential customer churn due to portfolio changes, and regulatory hurdles in finalizing the acquisition. These challenges could impact its growth and operational efficiency in the short term.
What recent news involves Digital-Power?
In January 2026, Digital-Power entered a definitive agreement to sell its U.S. power chain hoist and chain manufacturing operations to Pacific Avenue Capital Partners for $210 million. This divestiture aligns with its strategy to focus on the Kito Crosby acquisition.
Sources
- www.prnewswire.com — Divestiture of Digital-Power operations
- www.prnewswire.com — General press release distribution context
- www.forbes.com — General business strategy context
- www.forbes.com — General customer engagement context