Crane Co. announced that its Board of Directors has unanimously approved a plan to pursue a separation into two independent, publicly traded companies to optimize investment and capital allocation, accelerate growth, and unlock shareholder value. Upon completion, Crane Co.’s shareholders will benefit from ownership in two focused and simplified businesses that are both leaders in their respective industries and well-positioned for continued success:
- Crane Co. will be a leading global provider of mission-critical, highly engineered products and solutions, with differentiated technology, respected brands, and leadership positions in its markets. After the separation, Crane Co. will include the Aerospace & Electronics and Process Flow Technologies businesses.This year, these businesses are expected to generate approximately $1.9 billion in annual sales with a pre-corporate Adjusted EBITDA margin of approximately 18.5%.
Crane Co. will be led by Max Mitchell, who will continue to serve as President and Chief Executive Officer, with Rich Maue continuing to serve as Chief Financial Officer. The company intends to continue to be listed on the NYSE under its current ticker symbol, “CR”.
- Crane NXT will be a premier Industrial Technology business with substantial global scale, a best-in-class margin profile, and strong free cash flow generation. This year, the Payment and Merchandising Technologies (“PMT”) business that will become Crane NXT is expected to achieve approximately $1.4 billion in sales with a pre-corporate Adjusted EBITDA margin of approximately 28%.In addition to its market leading brands, Crane NXT will differentiate itself through its technology leadership, positioning it to leverage long-term secular drivers including automation, security and productivity, across several high-growth adjacent markets.
Crane’s Board of Directors and management believe that the creation of two pure-play companies with distinct product and service offerings will better position Crane’s businesses to deliver long-term growth and create value for customers, investors, and our associates, with each company benefiting from:
- Deeper operational focus, accountability and flexibility to meet customer requirements;
- Increased operating and financial flexibility to pursue growth opportunities;
- Tailored capital allocation strategies aligned with each company’s distinct business strategies and industry specific dynamics;
- Enhanced ability to attract a shareholder base aligned with each company’s clear value proposition; and,
- Enhanced ability to pursue accretive M&A opportunities, with the benefit of an independent equity currency reflective of the strength of each company.
Courtesy of Crane Co.