Crane Company (CR) has entered into an agreement to sell its Engineered Materials division to KPS Capital Partners, LP for $227 million.
Max Mitchell, Chairman of the Board, President, and CEO of Crane Company, stated, "This divestment is another crucial advancement following our recent efforts to streamline our portfolio and concentrate our resources on our two strategic growth platforms: Aerospace & Electronics and Process Flow Technologies."
Mitchell further noted, "Engineered Materials is a strong business with leading positions in its markets, supported by committed Crane associates, of whom I am immensely proud. We look forward to its continued growth under the stewardship of KPS. I extend my gratitude to our Engineered Materials team for their support and understanding in this decision."
Crane Company and KPS expect to finalize the transaction in the first quarter of the 2025 fiscal year, contingent upon customary closing conditions, including regulatory approvals.
Starting from the fourth quarter of 2024, Engineered Materials will be reported as discontinued operations.
Crane has revised its expected adjusted earnings from continuing operations to range from $4.71 to $4.86 per share, in contrast to the previous estimate of $5.05 to $5.20 per share.
For the fourth quarter, the company forecasts adjusted earnings from continuing operations between $1.10 and $1.25 per share.
