Crane Co. set to acquire Treasury supplier for nine figures
Updated 7:48 pm, Wednesday, December 6, 2017
STAMFORD — Industrial products manufacturer Crane Co., announced Tuesday it had agreed to acquire Crane Currency, the Boston-based banknote supplier to the U.S. Treasury, for $800 million from private equity firm Lindsay Goldberg, members of the Crane family and other shareholders.
Representing Stamford-based Crane’s second-largest acquisition, the deal fits into the company’s strategy of expanding in the currency and payment markets. Crane takes over a firm that is a leader in micro-optic security technology and a supplier of banknotes for central banks around the world. The firm has continually supplied the U.S. Treasury with its currency paper since 1879.
“Crane Currency is the fastest-growing, fully integrated global currency provider in the growing global banknote supply and security industry,” Crane Co. CEO and President Max Mitchell said in a statement. “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.”
The purchase price represents approximately 8.5 times Crane Currency’s estimated 2017 adjusted earnings, of $94 million.
Crane Co. intends to finance the acquisition through a combination of cash on hand and additional debt. The deal is expected to close early in the first quarter of 2018, according to company officials.
“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,” Mitchell said. “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.”
Crane shares closed Wednesday at $86.32, up 4.6 percent from their Tuesday close.
In the third quarter, Crane recorded sales of about $696 million, flat compared with the result in the same period last year. It turned in an operating profit of about $105 million, up 1.5 percent from the total in the third quarter of 2016.
Crane is headquartered at the First Stamford Place office complex, in the city’s Waterside section, where it occupies approximately 33,000 square feet.