Gaming industry payment and merchandising technology supplier Crane Company announced it has agreed to a 100 percent buyout of Crane and Co. Inc., also known as Crane Currency, for $800 million on a cash-free and debt-free basis.
Crane said Crane Currency, founded more than 200 years ago, is a leading supplier of micro-optic technology used for security purposes for specialized products like printed banknotes. Crane Currency also supplies “secure and highly engineered banknotes for central banks all over the world,” according to a press release issued by Crane.
The release said the private equity firm Lindsay Goldberg LLC, Crane family members and other shareholders are the vendors of the 100 percent equity interest. The purchase price represents about 8.5 times Crane Currency’s estimated 2017 EBITDA of $94 million, according to the release. It is expected to have generated 2017 sales of $500 million in 2017.
Crane Co President and Chief Executive Max Mitchell said the acquisition was 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. We believe it provides us a path to greater than 10-percent adjusted EPS growth annually for the next several years.”
The purchase is subject to regulatory approvals and closing conditions. Crane Co will finance the acquisition through a combination of cash on hand and additional debt, including $350 million in debt financing from Wells Fargo Bank, National Association and Wells Fargo Securities LLC
