Crane Co. To Acquire Banknote Manufacturer Crane Currency For $800 Million

Posted On: 12/6/2017

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STAMFORD, CT -- Crane Co., a diversified manufacturer of industrial products, including vending machines and payment systems, said it will purchase Crane Currency from private-equity firm Lindsay Goldberg, members of the Crane family and other shareholders, for $800 million on a cash- free and debt-free basis.

Founded in 1801, Crane Currency is a pioneer in advanced micro-optic security technology, and a fully integrated supplier of secure, highly-engineered banknotes for central banks all over the world.

Stamford, CT-based Crane Co.'s Crane Merchandising Systems unit is the nation's largest manufacturer of vending machines, vending software systems and cashless payments technology. Its Crane Payment Innovations is a leading producer of cash and cashless payment systems.

"We are extremely excited to announce this transaction, which will be Crane Co.'s second largest ever, and brings together two companies with nearly 380 years of combined history. Crane Currency is the fastest-growing fully integrated global currency provider in the growing global banknote supply and security industry," said Crane Co. chief executive Max Mitchell. "Making it part of Crane Co. is a logical extension of our expanding presence in the currency and payment markets. Our combined businesses will be able to offer end-to-end currency and security solutions, from substrate manufacturing and banknote design and printing to micro-optics and banknote validation."

Crane Currency is expected to have 2017 sales of approximately $500 million. Crane Co. intends to finance the acquisition through a combination of cash on hand and additional debt. The transaction is expected to take place early in the first quarter of 2018.

Crane Co. expects 2017 earnings of $4.38 to $4.48 per diluted share, compared with its prior range of $4.41 to $4.51 per diluted share, given incremental transaction related costs anticipated for the fourth quarter of 2017. Excluding transaction related charges, Crane Co. expects earnings of $4.45-$4.55 per diluted share.

Crane Co.'s initial 2018 full-year earnings guidance is $4.85 to $5.05 per diluted share, excluding any potential impact from the pending acquisition of Crane Currency. This outlook includes a core sales growth assumption of 2% to 4%. Additional details on 2018 earnings guidance will be provided in January on Crane Co.'s fourth quarter 2017 earnings conference call.