STAMFORD, Conn., Jan. 17 /PRNewswire-FirstCall/ -- Crane Co. , a diversified manufacturer of engineered industrial products, announced today that it had acquired the assets of CashCode Co. Inc., a privately held company specializing in niche applications for banknote validation, storage and recycling devices for use in vending, gaming, retail and transportation applications. The purchase price is $86 million in cash. CashCode had sales of approximately $48 million in 2005.
CashCode's head office and main manufacturing operation is located in Concord, Ontario. Founded in 1992, CashCode employs approximately 350 people worldwide serving a global marketplace with 75% of its sales outside the United States, of which a majority are in Europe and Russia.
Mr. Eric Fast, President and Chief Executive Officer of Crane Co., said, "CashCode has well-recognized technology and a strong complementary fit with our National Rejectors (NRI) business. NRI is a leader in coin validation systems, and CashCode is a leader in bill validation, with 55 approved and 77 pending patents. We will now be able to offer our customers a fully integrated payment system leveraging our vending equipment sales on a worldwide basis. While the majority of CashCode's business today is in the gaming business, sales synergies between NRI and Crane Merchandising Systems will provide growth opportunities in vending, amusement, transportation and retail automated checkout industries and expands our geographical sales coverage. We expect this acquisition will be modestly accretive to our earnings in 2006."
Crane Co. noted that further information about CashCode would be provided in the company's earnings conference call at 10 a.m. on Tuesday, January 24.
Crane Co. is a diversified manufacturer of engineered industrial products. Founded in 1855, Crane provides products and solutions to customers in the aerospace, electronics, hydrocarbon processing, petrochemical, chemical, power generation, automated merchandising, transportation and other markets. The Company has five business segments: Aerospace & Electronics, Fluid Handling, Engineered Materials, Merchandising Systems, and Controls. Crane has approximately 10,500 employees in North America, South America, Europe, Asia and Australia. Crane Co. is traded on the New York Stock Exchange . For more information, visit http://www.craneco.com/.
This press release may contain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements present management's expectations, beliefs, plans and objectives regarding future financial performance, and assumptions or judgments concerning such performance. Any discussions contained in this press release, except to the extent that they contain historical facts, are forward-looking and accordingly involve estimates, assumptions, judgments and uncertainties. There are a number of factors that could cause actual results or outcomes to differ materially from those addressed in the forward-looking statements. Such factors are detailed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2004 and subsequent reports filed with the Securities and Exchange Commission.
