Crane Co. in an effort to bolster its merchandising systems business

Crane Co. has acquired England based money controls unit of vending machine maker Ca-Mc Acquisition Co. Crane Co. is based in Stamford and is a diversified manufacturer of industrial products. Just recently, the firm added a line of coin hoppers, coin acceptors and bill validators to its portfolio by purchasing the money controls unit of Ca-Mc Acquisition Co. Crane Co’s latest addition is expected to have $62 million in revenue this year, and is expected to be neutral to Crane’s 2011 earnings and positive to 2012 earnings.

Eric Fast, Crane’s president and chief executive officer said the acquisition fits very well within the firm’s existing business and allows it to strengthen its position in the gaming and retail sectors of the market, including self-checkout applications. The transaction involving the money controls division, which employs 350 workers globally, is subject to anti-trust review in Germany and is expected to close by mid-December. Terms of the agreement were not disclosed.

Crane declined further comment until the anti-trust review is completed. Crane’s merchandising systems segment, which saw its third-quarter operating profit decline 9 percent from $6.9 million in 2009 to $6.3 million this year, includes money management device providers CashCode, National Rejectors and Telequip under its payment solutions sector. The division, which has annual sales of about $400 million, also owns six vending machine companies under its vending solutions business.

However, according to analysts, the acquisition of Ca-Mc’s money solutions business comes as part of Crane’s annual investment spending, pegged at about $200 million. In that sense, it marks the continuation of the firm’s commitment to expansion and additional growth, with yearly acquisitions under its strategy. The investment is not such a big deal for Crane, reiterated analysts.

Crane employs 10,000 workers in the Americas, Europe, Asia and Australia in five business segments — aerospace and electronics, fluid handling, engineered materials, merchandising systems and controls.

The company posted an operating profit of $63 million, or 70 cents per share, compared with an operating profit of $55 million, or 60 cents per share, for the same period last year. Crane’s shares rose 54 cents Friday to close at $38.50.

Crane is committed to growing Economic Value Added (EVA) products by continuing to transition to a more integrated operating company. The firm is keen on strengthening its businesses through successful implementation of the Crane Business System, made up of strategic linkages among its businesses, and through utilization of strong free cash flow for strategic acquisitions.

  • Facebook
  • LinkedIn
  • MySpace
  • Twitter
  • Yahoo! Buzz

Tags: , , , , , , , ,

Comments are closed.