Two months after halting Crane Composites’ sale to Grupo Verzatec S.A. de C.V. because of Department of Justice objections, Crane Co. President and CEO Max Mitchell said the division likely will remain with parent company Crane Co.
Crane Composites manufactures fiber-reinforced plastic (FRP) composite materials supplied to RV OEMs. It is part of the Engineered Materials division planned to be sold.
Mitchell said the breakdown of the planned sale, combined with the overall economic environment, likely meant the Engineered Materials division would not be sold again soon.
“The sale was effectively blocked,” Mitchell said. “Now, unfortunately, the time has not been in our favor. With everything else that is going on at Crane … I think we all kind of clearly see that minor recession is underway. Consumer discretionary is impacted first. We are seeing some adjustment in Engineered Materials. … I think investors should feel that Engineered Materials stays with Crane for the foreseeable future is most likely.”
The announcement came as Crane Co. released second quarter financial information. The Engineered Materials division reported $73 million in sales, up 23% from the second quarter of 2021. Operating profit rose 40% from the second quarter of 2021 to $11 million and Crane Co. said RV and building materials led the division’s performance.
“Clearly (we) indicated for years that, while a great business and a great team, Engineered Materials was not strategic,” Mitchell said. “It is a great business, great team and continues to drive nice free cash flow in the U.S. that we will continue to deploy. We will address this again at the right time in the future.”
