Engineered Components Provider Crane Elevates Aerospace Presence With $103M Vian Enterprises Acquisition

Crane Company CR disclosed the buyout of Vian Enterprises, Inc. for around $103 million on a cash-free and debt-free basis.

Vian designs and manufactures multi-stage lubrication pumps and lubrication system components technology for critical aerospace and defense applications with sole-sourced and proprietary content on the highest volume commercial and military aircraft platforms. 

CR estimates that Vian had trailing 12-month sales of about $33 million and adjusted EBITDA of around $8 million, with an order backlog exceeding $100 million through August 2023.

CR plans to finance the acquisition mainly through the proceeds from its revolving credit facility.

Crane's President and CEO, Max Mitchell, stated, "Vian is highly complementary to our Fluid Solution within the Aerospace & Electronics segment, significantly expanding our portfolio of mission critical aerospace flow control products. Vian has strong positions on the most attractive commercial and military aircraft platforms today, and combined with our existing fluid and thermal management capabilities, further strengthens our positioning for future content opportunities on engines, gearboxes and auxiliary power units."

The company expects Vian's margins to be immediately accretive to its Aerospace & Electronics' segment EBITDA margins and projects the long-term sales growth rate to be in line with the segment's previously disclosed long-term CAGR of 7% to 9%. 

Crane will provide further updates on the Vian acquisition during Q4 FY23 results on January 29, 2024.

As of September 30, 2023, cash balance stood at $274 million, and the total debt of $250 million.

Price Action: CR shares closed lower by 2.75% at $113.70 on Wednesday.