Crane Co., a manufacturer of industrial products, is separating into two independent companies to optimize investment and capital allocation. The separation will take approximately 12 months to complete and result in Crane Co. and Crane NXT.
Crane Co. will be a global provider of engineered products and services, and after the separation, the firm will include the aerospace & electronics, and process flow technologies businesses. Crane NXT will be an industrial technology business with a global scale, a best-in-class margin profile, and strong free cash flow generation.
Max Mitchell, Crane Co. CEO, stated: “This announcement marks a major milestone in the evolution of Crane Co. For decades, we have delivered consistent and differentiated execution, strengthening our business through organic growth and value-creating acquisitions. Having achieved the scale to operate as two market-leading, separate companies, we believe this transaction will unlock substantial value for our shareholders, as each company attracts an investor base tailored to its respective financial and growth profile.”
Skadden, Arps, Slate, Meagher & Flom is serving as legal counsel. Goldman Sachs & Co. is acting as the financial advisor for Crane Co.