Crane completes acquisition of Treasury supplier
Published 12:50 pm, Thursday, January 11, 2018
STAMFORD — Industrial products manufacturer Crane Co. announced Wednesday it had closed on the acquisition of Crane Currency, the Boston-based banknote supplier to the U.S. Treasury, for $800 million from private equity firm Lindsay Goldberg, descendants of the company’s founder and other shareholders.
The name shared by the two companies is a coincidence; they did not have a connection before making the deal.
As Stamford-based Crane’s second-largest acquisition, the deal aligns with 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 global banknote supply and security industry, and it is an excellent fit to complement our expanding presence in the currency and payment markets,” Crane Co. President and CEO Max Mitchell said in a statement. “We believe that the combined businesses will be stronger together, offering 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. officials have said they intended to finance the acquisition through a combination of cash on hand and additional debt.
In the third quarter, Crane produced 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 takes approximately 33,000 square feet.
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