Crane Company acquires Technifab for $40.5 million

STAMFORD, Conn. - Crane Company (NYSE:CR), an industrial manufacturing and technology leader, announced the completion of its acquisition of Technifab Products, Inc., a provider of vacuum insulated pipe systems and cryogenic valves. The deal, finalized on Friday, was valued at $40.5 million on a cash-free and debt-free basis.

Technifab, established in 1992 and based in Brazil, Indiana, reported trailing 12-month sales of around $20 million and an adjusted EBITDA of approximately $4 million through September 2024. The acquisition is expected to bolster Crane's Process Flow Technologies segment by extending its cryogenic capabilities into semiconductor, medical, and pharmaceutical markets and expanding its geographic reach.

Max H. Mitchell, Crane's Chairman, President, and CEO, expressed optimism about the acquisition, stating that Technifab's expertise will enhance Crane's ability to offer a broader suite of solutions in attractive end markets. He also acknowledged the Short family, founders of Technifab, for their role in facilitating the acquisition.

Crane Company, with a history dating back to 1855, specializes in engineered components for aerospace, defense, space, and process industry applications. With the addition of Technifab, Crane aims to further invest in growth opportunities by leveraging Technifab's strengths alongside its existing cryogenic capabilities, including those from its recent acquisition of CryoWorks.

The press release includes forward-looking statements, which are based on management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially. The financial results mentioned are non-GAAP measures, which the company believes provide useful supplemental information but should not be considered a substitute for GAAP measures.

This news is based on a press release statement from Crane Company, and it reflects the company's plans and expectations regarding the acquisition's impact on its business and capabilities.

In other recent news, Crane Company has reported a strong third-quarter performance, exceeding expectations with an adjusted EPS of $1.38 and a 6% rise in core sales growth. This robust performance, primarily driven by the Aerospace & Electronics and Process Flow Technologies segments, has led Crane to raise its full-year adjusted EPS outlook to a range of $5.05-$5.20, indicating a projected 19% growth. Despite operational challenges such as Hurricane Helene's impact on its Marion, North Carolina facility, and a strike at Boeing (NYSE:BA), Crane's resilience has been notable.

The company's CEO, Max Mitchell, has voiced confidence in Crane's strategic direction and market position, pointing out significant merger and acquisition capacity and ongoing opportunities across its business segments. In addition to an expected $20 million acquisition in the cryogenic space, Crane has secured significant contracts and orders, including with Deutsche Aircraft and a $5 million chemical facility upgrade.

However, not all news was positive, as Engineered Materials sales decreased by 13% to $49 million, with margins down to 12.9%. Furthermore, the company expects an additional $0.05 to $0.10 impact in Q4 due to Hurricane Helene. Despite these challenges, Crane remains focused on its long-term growth targets and strategic initiatives, including potential acquisitions and the planned sale of its Engineered Materials business. These recent developments underscore Crane's commitment to maximizing shareholder value and sustaining its market leadership.

InvestingPro Insights

Crane Company's recent acquisition of Technifab Products aligns well with its strong financial performance and market position. According to InvestingPro data, Crane boasts a market capitalization of $9.01 billion and has demonstrated impressive revenue growth of 11.63% over the last twelve months as of Q3 2024. This growth trajectory is further supported by a robust EBITDA growth of 60.65% during the same period, indicating the company's ability to effectively integrate acquisitions and drive operational efficiencies.

InvestingPro Tips highlight Crane's financial stability and shareholder-friendly policies. The company has maintained dividend payments for 54 consecutive years, showcasing its commitment to returning value to shareholders. This is complemented by a dividend yield of 0.52% and a dividend growth rate of 13.89% over the last twelve months. Additionally, Crane operates with a moderate level of debt and has liquid assets exceeding short-term obligations, providing financial flexibility for strategic acquisitions like Technifab.

The acquisition of Technifab is expected to enhance Crane's market position, which is already strong as evidenced by its high return over the last year and decade. With a P/E ratio of 34.82, Crane is trading at a premium, suggesting investor confidence in its growth prospects and strategic initiatives.

For investors seeking more comprehensive insights, InvestingPro offers 11 additional tips for Crane Company, providing a deeper understanding of the company's financial health and market position.

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