Crane Co. (NYSE:CR), a diversified manufacturer of highly engineered
industrial products, announced today that the European Commission has
approved the definitive agreements to implement the licensing and
divestiture Commitments by Crane Co. related to its pending acquisition
of MEI Conlux Holdings (“MEI”). Crane Co. said that with this approval,
it intends to close the acquisition of MEI during the week of December
9, 2013. The $804 million purchase price (on a cash free, debt free
basis) for the MEI acquisition will be financed through a combination of
cash on hand and additional debt.
In July, Crane Co. announced that the European Commission had cleared
the pending acquisition of MEI conditioned upon Crane Co.’s entry into
agreements satisfactory to the European Commission to implement the
required Commitments regarding two Crane product lines – licensing of
the Currenza C2 coin recycler product line for the European
marketplace and divestiture of the B2B bill recycler product line. The
product lines will have total approximate annual sales of $28 million in
2013. The two product lines 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. These transactions are expected to close and become effective
in late December or early January.
Crane Co. reaffirmed its previously announced estimate of accretion
associated with the acquisition of MEI (including the impact of the
transactions associated with the Commitments) within the first twelve
months of ownership at $0.20 per share, including $0.07 per share of
synergies. Crane Co. also reaffirmed its estimate that synergies will
reach $25 million pre-tax, or $0.30 per share, at the end of the third
year following the acquisition (2016). These estimates exclude inventory
step-up and one-time transaction and integration related costs.
Crane Co. will provide additional information concerning MEI on January
27, 2014, in connection with its fourth quarter earnings release and on
February 27, 2014, at the Company’s Investor Day program.
This press release may contain forward-looking statements as defined
by the Private Securities Litigation Reform Act of 1995. These
statements present management’s expectations, beliefs, plans and
objectives regarding future financial performance, and assumptions or
judgments concerning such performance. Any discussions contained
in this press release, except to the extent that they contain historical
facts, are forward-looking and accordingly involve estimates,
assumptions, judgments and uncertainties. There are a number of
factors that could cause actual results or outcomes to differ materially
from those addressed in the forward-looking statements. Such
factors are detailed in the Company’s Annual Report on Form 10-K for the
fiscal year ended December 31, 2012 and subsequent reports filed with
the Securities and Exchange Commission.
Crane Co.
Richard E. Koch, 203-363-7352
Director, Investor Relations
and Corporate Communications
www.craneco.com