Crane Company, a leading provider of engineered industrial products, has announced its acquisition of Vian Enterprises, Inc. for approximately $103 million. The deal was made on a cash-free and debt-free basis, allowing Crane to add Vian’s expertise in multi-stage lubrication pumps and lubrication system components to its portfolio.
Vian specializes in designing and manufacturing technology for critical aerospace and defense applications. They have a strong presence in the aerospace industry, with sole-sourced and proprietary content on high-volume commercial and military aircraft platforms. The company’s order backlog exceeds $100 million through August 2023, indicating a positive outlook for future growth.
According to Crane, Vian reported sales of around $33 million and adjusted EBITDA of approximately $8 million in the past 12 months. This acquisition is expected to be immediately accretive to Crane’s Aerospace & Electronics segment EBITDA margins and contribute to long-term sales growth in line with the segment’s previously disclosed CAGR of 7% to 9%.
The financing for the acquisition will primarily come from Crane’s revolving credit facility. With a cash balance of $274 million as of September 30, 2023, and a total debt of $250 million, the company is well-positioned to fund the transaction.
Crane’s President and CEO, Max Mitchell, expressed excitement about the acquisition, stating that Vian is highly complementary to their Fluid Solution within the Aerospace & Electronics segment. He believes that the addition of Vian’s products will significantly expand their portfolio of mission-critical aerospace flow control products. Mitchell also highlighted the strong positions Vian holds on the most attractive commercial and military aircraft platforms, which will further strengthen Crane’s capabilities in fluid and thermal management.
Investors responded to the news with some caution, as Crane’s shares closed lower by 2.75% at $113.70 on the day of the announcement. However, the company remains optimistic about the long-term prospects of the acquisition and plans to provide further updates during its Q4 FY23 earnings results on January 29, 2024.
Overall, Crane’s acquisition of Vian Enterprises represents a strategic move to enhance its Aerospace & Electronics segment and capitalize on growth opportunities in the aerospace industry. With its strong financial position and the addition of Vian’s technology and expertise, Crane is well-positioned to expand its market presence and drive future success in the sector.
