Crane to buy MEI Conlux

Crane expects the MEI deal to add to earnings within the first year of acquisition by about 25 cents per share, including 5 cents in synergies.

"We expect synergies to grow to us$25 million annually on a pre-tax basis, or 30 cents per share in 2015," Crane CEO, Eric Fast, said in a statement. "This acquisition is consistent with our strategy of niche market leadership."

Fast also said the MEI deal would materially strengthen the company's existing payment solutions business, which has grown through three acquisitions beginning in 2006.
Crane said that it intends to finance the deal through a combination of cash on hand and additional debt.

MEI Conlux had sales of about us$400 million in 2012, and employs 820 people worldwide. Crane's payment solutions business had annual sales of us$175 million. On a pro forma basis, the combined sales of MEI and Crane Payment Solutions would be about us$575 million in 2012.

The company said it continues to expect 2012 earnings in the lower half of the previously communicated outlook range of us$3.75 to us$3.85 per share.

Also, the company's preliminary outlook for 2013 includes core sales growth of between 2-4 percent, excluding acquisition and foreign exchange impacts, and earnings per share in a range of us $4.05 to us$4.20. Analysts are expecting the company to earn us$4.13.