Publicly-traded Crane Co. has agreed to acquire similarly named Crane & Co. (Crane Currency) from private equity firm Lindsay Goldberg, members of the Crane family, and other shareholders for $800 million. Lindsay Goldberg first invested in Crane Currency in September 2008.
Crane Currency is a manufacturer of cotton-based paper products used in the printing of national currencies, passports and banknotes. The company is also a provider of micro-optic security technology that is used by more than 50 central banks in the design and manufacture of their nations’ banknotes and the company is the dominant supplier of paper for use in US currency. Crane Currency, led by CEO Stephen DeFalco, was founded in 1801 and is headquartered in Boston (www.cranecurrency.com).
Crane Currency is expected to have 2017 sales of approximately $500 million with an adjusted EBITDA of $94 million. The purchase price represents approximately 8.5x Crane Currency’s 2017 adjusted EBITDA.
Crane Co. (NYSE: CR) is a diversified manufacturer of industrial products including diagnostic, measurement, and control devices; aerospace components; engineered materials; valves and pumps; vending machines; and other automated merchandising systems. Annual revenues of Crane Co. are approximately $2.8 billion. The company, founded in 1855, has approximately 11,000 employees and is headquartered in Stamford, CT (www.craneco.com).
“We are extremely excited to announce this transaction, which will be Crane Co.’s second largest ever, and brings together two companies with nearly 380 years of combined history,” said Max Mitchell, President and Chief Executive Officer of Crane Co. “Crane Currency is the fastest growing, fully integrated global currency provider in the growing global banknote supply and security industry. Making it part of Crane Co. is a logical extension of our expanding presence in the currency and payment markets.”
Lindsay Goldberg manages $13 billion of equity capital and is focused on partnering with family-owned and entrepreneur‐led businesses seeking a partner to help actively build their businesses. The firm is based in New York (www.lindsaygoldbergllc.com).
This transaction is expected to close in the first quarter of 2018.
© 2017 Private Equity Professional | December 7, 2017
