GGRAsia – Crane NXT eyes US$3bln in sales in 5 years: firm

Crane NXT eyes US$3bln in sales in 5 years: firm

Mar 10, 2023 Newsdesk Industry Talk, Latest News

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.