Crane NXT, a leading industrial technology corporation, reported on Monday that it has secured a definitive deal to purchase OpSec Security from Investcorp Technology Partners for a cash consideration of $270 million. The final price is subject to standard modifications.
OpSec Security is renowned for its proficiency in brand protection and authentication solutions. The deal, which is subject to customary closing conditions, is slated for completion during the second quarter of 2024.
Crane NXT anticipates substantial growth from this acquisition. The purchase is projected to positively influence the adjusted earnings-per-share in 2025, and is expected to deliver double-digit Return On Invested Capital (ROIC) by the fifth year, an achievement powered by OpSec's growth prospect and the economic benefits resulting from the transaction.
The company also believes that the acquisition will broaden its capabilities across the entire product and brand authentication value chain. However, the acquisition will not include Zacco, which is currently a part of OpSec and will continue to be retained by Investcorp.
Post acquisition, a business relationship will continue between OpSec and Zacco. Excluding Zacco’s contribution, OpSec projects a revenue generation of about $130 million for the fiscal year 2024.
Crane NXT’s President and CEO, Aaron Saak, commented on the acquisition, saying, "OpSec is an excellent alignment with our portfolio of technologies that safeguard, detect and authenticate our customers' most valuable assets. This acquisition enables us to consolidate our complementary proficiency in anti-counterfeiting technology and foster growth as a trusted partner to clients, thereby driving sustainable value creation.”
In the acquisition deal, Baird is performing as the financial consultant for Crane NXT, while Davis Polk & Wardwell LLP is the legal counsel. Proskauer Rose LLP is acting as the legal counsel for OpSec.
