STAMFORD, Conn. - Crane Company (NYSE:CR), a prominent industrial manufacturer whose stock has surged over 70% in the past year according to InvestingPro data, has agreed to divest its Engineered Materials segment to private equity firm KPS Capital Partners (WA:CPAP) for $227 million. The transaction is expected to close in the first quarter of 2025, pending regulatory approvals.
This move is part of Crane's strategy to streamline its portfolio and concentrate on its core growth platforms, Aerospace & Electronics and Process Flow Technologies. The company has been shedding non-core assets and liabilities over the past few years, including Crane Supply and legacy liabilities in 2022, and executing a separation transaction in 2023.
Max Mitchell, Crane's CEO, emphasized the Engineered Materials business's strong market position and expressed pride in the team, which he anticipates will continue to thrive under new ownership. He also acknowledged the team for their support during the divestiture process. The company's strategic decisions appear to be paying off, as reflected in its "GOOD" financial health score from InvestingPro's comprehensive analysis.
Crane Company has revised its full-year 2024 earnings guidance, reflecting the classification of Engineered Materials as discontinued operations. The updated adjusted earnings per share (EPS) from continuing operations are projected to be between $4.71 and $4.86. For the fourth quarter of 2024, the expected adjusted EPS from continuing operations is between $1.10 and $1.25.
The press release also provided a background on Crane Company, which has been delivering technology-led solutions since 1855 and employs approximately 7,500 people globally. The company has maintained dividend payments for 54 consecutive years, demonstrating long-term financial stability. KPS Capital Partners, the acquiring entity, manages funds with around $21.4 billion in assets under management as of September 30, 2024, and is known for significant investments in manufacturing and industrial companies. For detailed insights into Crane's financial metrics and future prospects, investors can access the comprehensive Pro Research Report available on InvestingPro.
The information in this article is based on a press release statement from Crane Company.
In other recent news, Crane Company demonstrated strong financial performance by exceeding expectations in its third-quarter results. The company reported an adjusted EPS of $1.38 and a 6% increase in core sales growth, primarily driven by its Aerospace & Electronics and Process Flow Technologies segments. In light of these results, Crane raised its full-year adjusted EPS outlook to a range of $5.05-$5.20, indicating a projected 19% growth.
Crane Company also announced the completion of its acquisition of Technifab Products, Inc., a provider of vacuum insulated pipe systems and cryogenic valves, for $40.5 million. This acquisition is expected to extend Crane's cryogenic capabilities into semiconductor, medical, and pharmaceutical markets and expand its geographic reach.
Despite facing operational challenges such as Hurricane Helene's impact on its Marion, North Carolina facility, and a strike at Boeing (NYSE:BA), Crane showed resilience. However, the company's Engineered Materials sales decreased by 13% to $49 million, with margins down to 12.9%. These recent developments highlight Crane's commitment to maximizing shareholder value and sustaining its market leadership.
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