Crane Company to acquire Precision Sensors for $1.06 billion

STAMFORD, Conn. - Crane Company (NYSE: CR), an industrial manufacturing and technology firm, announced its plans to purchase Precision Sensors & Instrumentation (PSI) for $1.06 billion, factoring in tax benefits. PSI, a subsidiary of Baker Hughes (NASDAQ: BKR), specializes in sensor technologies used in aerospace, nuclear, and process industries.

The acquisition is expected to complement Crane’s existing portfolio, particularly enhancing its Aerospace & Electronics and Process Flow Technologies segments. PSI’s 2025 sales are projected at around $390 million, with an adjusted EBITDA of $60 million.

Max H. Mitchell, Crane’s CEO, stated that PSI’s brands are well-aligned with Crane’s strategic direction, bolstering its pressure sensing capabilities and doubling the size of Crane Nuclear with Reuter-Stokes’ radiation sensing technologies. PSI’s Panametrics brand will add advanced ultrasonic flow meters and precision moisture analyzers to Crane’s product offerings.

The transaction is designed to meet Crane’s strategic and financial criteria, including a 10% return on invested capital by the fifth year post-acquisition. Crane anticipates PSI will contribute to long-term sales growth in the 4% to 6% range, with operating profit leveraging at approximately 35%. The company also expects margin expansion through the deployment of the Crane Business System.

Crane intends to finance the purchase with available cash and additional debt, aiming for a net debt to adjusted EBITDA ratio of about 1x post-acquisition. This acquisition is part of Crane’s ongoing portfolio evolution, focusing on high-engineering products for critical applications with higher growth and gross margin profiles.

Pending regulatory approvals and customary closing conditions, the deal is expected to close by the end of 2025 or early 2026.

This strategic move underscores Crane’s commitment to expanding its technological capabilities and market reach in key sectors, including aerospace & defense, nuclear, and industrial process sensing. The information regarding this acquisition is based on a press release statement.

In other recent news, Baker Hughes reported its first-quarter 2025 earnings with an adjusted earnings per share (EPS) of $0.51, surpassing the forecasted $0.48. However, the company’s revenue of $6.43 billion fell short of the anticipated $6.53 billion. Despite the earnings beat, RBC Capital Markets revised its price target for Baker Hughes stock, lowering it to $46 from $50, while maintaining an Outperform rating. The revision follows the company’s first-quarter earnings, where EBITDA slightly exceeded expectations by 2%.

Additionally, Baker Hughes has entered into a joint venture with Cactus Companies, where Cactus will acquire a 65% controlling interest in Baker Hughes’ Surface Pressure Control (SPC) business for $344.5 million. This transaction is part of a broader $530 million joint venture. Baker Hughes will retain a 35% stake in the SPC business. The deal is expected to close in the second half of 2025.

This strategic partnership aims to enhance innovation and reliability in well control, integrating Cactus’s expertise into international markets. Baker Hughes Chairman and CEO Lorenzo Simonelli highlighted the transaction as a step in the company’s portfolio optimization strategy. The company continues to face challenges such as fluctuating commodity prices and tariff-related concerns, which have affected its full-year outlook. Despite these challenges, Baker Hughes remains focused on margin improvement and market expansion.

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