Crane Co. announced that it has signed an agreement to divest its Engineered Materials segment. The company signed an agreement to sell the Engineered Materials segment to Grupo Verzatec S.A. de C.V. for $360 million on a cash-free and debt-free basis. The sale is subject to customary closing conditions and regulatory approvals.
The Engineered Materials segment includes Crane Composites, a world leader in fiber-reinforced composite material supplies. Crane Composites is an OE supplier to the RV industry and employs about 700 workers at four U.S. facilities.
“Engineered Materials is an outstanding business, built through a series of acquisitions over many years with dedicated Crane associates that I am very proud of,” President and CEO Max Mitchell said. “Over time, as we have shaped the portfolio, we have reassessed the strategic fit of this business to Crane, and we believe this exceptional team will be better able to pursue both organic and inorganic growth with the new owner. I wish to thank our Engineered Materials team for their support and understanding regarding this decision.”
In Crane Co.’s 2020 annual report, issued in January 2021, the company detailed a positive outlook for the Engineered Materials segment in 2021.
“Engineered Materials is poised for an extremely strong recovery. Recreational Vehicle (RV) demand soared in the second half of 2020 driven largely by new entrants attracted to the wholesome and safe option of RV outdoor vacations and supported by favorable demographics,” the report stated. “We expect strong, sustainable demand from RVs, with our transportation products driven by demand for trailers not far behind. We believe that Engineered Materials is at the very start of a strong emerging new cycle, coupled with growing opportunities for share gains.”
