Crane Co., a diversified manufacturer of highly engineered industrial products, announced that it has signed an agreement to purchase 100 percent of the equity interests in Crane Currency, for $800 million.
Founded in 1801, Crane Currency is a pioneer in advanced micro-optic security technology, and a fully integrated supplier of secure and highly engineered banknotes for central banks all over the world.
The purchase price represents approximately 8.5x Crane Currency's estimated 2017 adjusted EBITDA of $94 million.
Mr. Max Mitchell, president and chief executive officer of Crane Co., said, "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. 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 with adjusted EBITDA of $94 million. Excluding Special Items, the acquisition is expected to be accretive to EPS by $0.15 in the first full year post-closing, increasing to approximately $1.00 by 2021.
Mr. Mitchell continued: "This transaction meets all of Crane Co.'s strategic and financial criteria for acquisitions, and we believe it provides us a path to greater than 10 percent adjusted EPS growth annually for the next several years."
The purchase is however, contingent upon regulatory approvals and customary closing conditions, said the company.
Mr. Mitchell concluded: "I would also like to acknowledge the effort and success of the extended Crane family, as well as the current Crane Currency management team led by CEO Stephen DeFalco. Over the past 15 years, they have transformed Crane Currency from a U.S. focused substrate manufacturer to a global leader in micro-optics and currency security solutions, as well as banknote design and printing. We are honored to welcome Crane Currency, with its strong legacy and track record, into our company, Crane Co."
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