Crane Co., a diversified manufacturer of highly engineered industrial products, announced today 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.
According to the company, 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.
Crane Co. will be led by Max Mitchell, who will continue to serve as president and CEO, 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 business that will become Crane NXT is expected to achieve about $1.4 billion in sales.
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, according to the company.
Through its Engineered Materials division, Crane is one of the world’s largest manufacturers of fiberglass-reinforced plastics (FRP).