Crane Co (CR) Spin-off Notes

April 2, 2023 – Update

Crane Co (CR) will break up into two public companies on April 3: Crane Co and Crane NXT. Crane Co, the spin-off, will retain the Crane name/ticker and be comprised of the Aerospace & Electronics and Process Flow Technologies (valves/pumps) businesses. The current CEO (Max Mitchell) and current CFO (Rich Maue) will go with the spin off. The spin-off is trading in the when issued market at $75. With 57.3MM shares outstanding and net debt of $125MM (at the midpoint), Crane Co will have a market cap of $4.3BN and an EV of $4.4BN. Guidance for 2023 is EBITDA of $321MM and EPS of $3.55. It’s trading at 13.4x EBITDA. According to Morgan Stanley, the median takeout multiple for Aerospace and Defence compa