STAMFORD, CT -- Crane Co. closed its $804 million acquisition of MEI Conlux Holdings on Dec. 11. The deal, announced one year ago, got the green light earlier this month from the European Commission.
In July, the European Commission cleared Crane's acquisition of MEI under the condition that the company license its Currenza C2 coin "recycler" product line in Europe and divest its B2B bill "recycler" product line. | SEE STORY
Crane said the two product lines will have total approximate annual sales of $28 million in 2013. They will be licensed and sold, respectively, to the Suzo-Happ Group, a global components supplier and manufacturer serving more than 20,000 customers worldwide across a variety of end markets. The transactions are expected to close in late December or early January.
Crane Co. reaffirmed its previously announced estimate of accretion associated with the acquisition of MEI within the first 12 months of ownership at 20¢ a share, including 7¢ per share of synergies. Crane also reaffirmed its estimate that synergies will reach $25 million pretax, or 30¢ a share, at the end of the third year following the acquisition (2016).
MEI Conlux chief executive Mike Hayes will lead the combined payment solutions business that will be headquartered at MEI's Malvern, PA, site. Hayes will report to Crane executive vice-president and chief operating officer Max Mitchell. In a letter to its customers, MEI said there would be no immediate impact on daily operations.
Crane said it will provide an update on the MEI acquisition on Jan. 27, in connection with its fourth-quarter earnings release, and on Feb. 27 at its analysts meeting.
Crane Merchandising Systems, a segment of Crane Co. (Stamford, CT), is made up of two units that manufacture vending machines and payment systems. Streamware vending management software is part of the machine segment.
Crane Payment Solutions manufactures payment systems under the names CashCode, Money Controls, NRI (National Rejectors Inc.) and Telequip. It has offices in North and South America, Europe, Australia, Asia and Africa and markets payment systems in more than 75 countries.