- Crane Company (CR, Financial) is set to acquire Precision Sensors & Instrumentation (PSI) from Baker Hughes (BKR) for $1,060 million.
- The acquisition aims to enhance Crane's capabilities in aerospace, nuclear, and process industries.
- The deal is expected to close by late 2025 or early 2026, subject to regulatory approvals.
Crane Company (CR), a leader in industrial manufacturing and technology, has announced its agreement to acquire Precision Sensors & Instrumentation (PSI) from Baker Hughes (BKR) for $1,060 million after tax adjustments. The acquisition will expand Crane's offerings significantly in aerospace, nuclear, and process industries.
PSI, known for its sensor-based technologies, is projected to record sales of $390 million and an adjusted EBITDA of $60 million in 2025. This strategic acquisition is expected to bolster Crane’s existing segments, namely Aerospace & Electronics and Process Flow Technologies. The addition of PSI will integrate iconic brands like Druck, Reuter-Stokes, and Panametrics into Crane’s portfolio, enhancing its position across various critical applications.
The decision aligns with Crane’s strategic goals to drive shareholder value, with an anticipated 10% ROIC by year five. This move will capitalize on Crane’s proven track record in acquisitions, aiming for long-term sales growth between 4% and 6%, and operating profit leverage of approximately 35%.
Financing for the acquisition will be drawn from a combination of cash reserves and additional debt, and Crane’s net debt to adjusted EBITDA ratio is estimated to remain at approximately 1x, providing further capacity for future acquisitions.
The acquisition is subject to customary closing conditions and regulatory approvals, with an expected completion toward the end of 2025 or early 2026.
