Engineered Components Provider Crane Elevates Aerospace Presence With $103M Vian Enterprises Acquisition
Portfolio Pulse from Lekha Gupta
Crane Company (NYSE:CR) has acquired Vian Enterprises, Inc. for approximately $103 million, aiming to enhance its aerospace and defense offerings. Vian, known for its lubrication pumps and system components, reported trailing 12-month sales of $33 million and adjusted EBITDA of $8 million. The acquisition is expected to be financed through Crane's revolving credit facility and is anticipated to be immediately accretive to its Aerospace & Electronics segment EBITDA margins. Crane will discuss the acquisition further in its Q4 FY23 results on January 29, 2024. As of September 30, 2023, Crane had a cash balance of $274 million and total debt of $250 million. CR shares dropped by 2.75% to $113.70.
January 04, 2024 | 11:13 am
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POSITIVE IMPACT
Crane Company's acquisition of Vian Enterprises is expected to strengthen its aerospace and defense segments, with Vian's $33 million in sales and $8 million in adjusted EBITDA. The deal is financed through Crane's credit facility and is likely to be accretive to EBITDA margins.
The acquisition of Vian Enterprises is directly related to Crane Company and is likely to have a positive impact on its financial performance, particularly in the aerospace and defense segments. The deal is expected to be accretive to EBITDA margins, which is typically viewed favorably by investors. However, the short-term price action reflects a decline, which may be due to broader market conditions or investor sentiment rather than the acquisition news itself.
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IMPORTANCE 80
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