Crane said it will split the company into two separately traded entities to accelerate growth and unlock shareholder value.
Crane Co. will group the company’s aerospace & electronics and process flow technologies businesses. These divisions are expected to generate about $1.9 billion in annual sales and an adjusted EBITDA margin of about 18.5 percent.
Crane NXT will group the payment and merchandising technologies businesses and are expected to generate $1.4 billion in sales with an EBITDA market of 28 percent.
“This announcement marks a major milestone in the evolution of Crane Co. For decades, we have delivered consistent and differentiated execution, strengthening our business through organic growth and value-creating acquisitions,” said president and CEO Max Mitchell. “Having achieved the scale to operate as two market-leading, separate companies, we believe this transaction will unlock substantial value for our shareholders, as each company attracts an investor base tailored to its respective financial and growth profile.”
The transaction is expected to take about 12 months to complete.