Crane Co. CR, a diversified manufacturer of highly engineered
industrial products, announced that it had reached an agreement with sellers
of MEI Conlux Holdings (“MEI”), on revised terms for the acquisition of MEI.
As previously announced, the European Commission cleared the pending
acquisition of MEI conditioned upon Crane Co.'s entry into agreements
satisfactory to the Commission to implement remedies regarding two product
lines – divestiture of the B2B bill recycler product line and licensing in
Europe for the Currenza C^2 coin recycler product line, both manufactured and
sold by Crane Co.'s Payment Solutions business, within its Merchandising
Systems segment. The remedies would not affect the competing bill and coin
recycler product lines of MEI.
Under the revised agreement, the purchase price will be approximately $804
million on a cash free and debt free basis, compared to the previously
announced price of $820 million, in each instance subject to customary
adjustments as provided in the purchase agreement. Crane also agreed to share
in one-third of any refinancing costs incurred by MEI as a result of the
delayed closing, up to a maximum of $5 million. Crane will be responsible for
implementing the divestiture and licensing remedies pursuant to the conditions
of the European Commission clearance and will retain any proceeds thereof.
Subject to successful execution of the remedies, the acquisition is expected
to close in the fourth quarter of 2013.
Crane Co. also noted that the U.S. Federal Trade Commission cleared the MEI
acquisition, without conditions, on July 23.
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