STAMFORD, CT -- Crane Co. said that the European Commission (Brussels, Belgium) has cleared its proposed acquisition of MEI Conlux Holdings, conditioned upon Crane's agreement to divest its B2B bill "recycler" product line, and license its Currenza C2 coin "recycler" product line in Europe.
Both currency recycler lines are manufactured and sold by Crane's Payment Solutions business, part of Crane Merchandising Systems.
Read Crane's account of the stipulations here.
These measures would not affect the MEI bill and coin recycler product lines that presently compete with CMS's. And Crane estimates that they would affect less than 10% of the aggregate sales of the combined businesses. The time needed to implement them would delay the anticipated closing of the acquisition until the fourth quarter of this year.
Crane Co. also stated that the staff of the U.S. Federal Trade Commission has recommended clearance of the MEI acquisition, without conditions, and that the FTC is expected to vote on that recommendation on Monday, July 22.
Crane Co. is currently in negotiations with Bain Capital and Advantage Partners, the representatives of the owners of MEI, about the economic effects of the remedies involving the two CPS product lines. As the aggregate sales of those lines exceed the $15 million threshold set forth in the stock purchase agreement that provides for the MEI acquisition, Crane Co. is entitled not to close, absent reaching a mutually satisfactory agreement with the sellers. Crane said that it expects the negotiations to continue, but no assurance can be given that a mutually satisfactory adjustment to the transaction terms will be reached.
Crane Co. is a diversified manufacturer of highly engineered industrial products, including the vending machines and payment systems manufactured and marketed by its Crane Merchandising Systems unit.