Stamford, Connecticut-based Crane Co. (NYSE: CR) announced on Monday that it has signed an agreement to sell-off its Engineered Materials division for $365 million to Grupo Verzatec S.A. de C.V. on a cash-free and debt-free basis. The completion of the deal is subject to the customary closing conditions and regulatory approvals
At the same time, Crane Co. also announced that its Fluid Handling segment had been renamed Processed Flow Technologies, as the former name “no longer reflects who we are today,” according to Crane Co. CEO and President Max Mitchell.
“Engineered Materials is an outstanding business, built through a series of acquisitions over many years with dedicated Crane associates that I am very proud of,” Mitchell said. “Over time, as we have shaped the portfolio, we have reassessed the strategic fit of this business to Crane, and we believe this exceptional team will be better able to pursue both organic and inorganic growth with the new owner. I wish to thank our Engineered Materials team for their support and understanding regarding this decision.
“Given the continued strength we are seeing across our businesses, we are maintaining our full year adjusted EPS guidance of $5.65 to $5.85 despite the exclusion of approximately $0.44 of EPS contribution from Engineered Materials that had been included in prior guidance.”
Crane Co. will provide more details on the sale and its financial prospects during an investor conference on Wednesday.