Crane NXT Co, the entity that will take on the payment and merchandising technologies businesses of Crane Holdings Co, aims to achieve US$3 billion in annual sales in the next five years. The information was disclosed on Thursday, at an investor presentation day held by Crane NXT.
The group is a provider of products to sectors including the casino industry. Crane NXT is set to become a separate, public-traded entity on April 3.
The separation is to occur through a tax-free distribution of the aerospace and electronics, process flow technologies, and engineered materials businesses, to the group’s shareholders. These businesses will be under a new entity called Crane Co.
Crane reported net income of US$410.6 million for full-year 2022, on net sales that were flat year-on-year, at just above US$3.37 billion. The firm’s payment and merchandising technologies recorded sales of nearly US$1.34 billion last year.
On Thursday, Crane NXT said the company expected to achieve sales of US$1.3 billion this year, with a “high-20s of percent” in terms of adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) margin.
The group also said the separation would allow Crane NXT “to attract a shareholder base aligned with its distinct value proposition”.
According to the presentation, Crane NXT would be able to “better capitalise on investment opportunities” and would have a “strong balance sheet with substantial capital available for acquisitions”.
Crane NXT anticipated having circa US$3.0 billion of capacity for “disciplined merger and acquisitions” through 2027; and keeping the ratio of net debt to adjusted EBITDA at below 3 times.
The company also said it expected annualised post-separation corporate costs of about US$50 million, and net non-operating expense of circa US$45 million in 2023.
Crane NXT’s first-quarter 2023 will be reported on a Crane Holdings consolidated basis, it added.
