Crane Co., a diversified industrial products company headquartered in Connecticut, US, has announced the acquisition of Cummins Allison Corp. for $160 million. Cummins Allison is a US manufacturer of currency handling systems, including high-speed cash and coin counting and sorting machines, ATMs, retail cash office solutions and related software along with a nationwide service network. The deal was closed on December 31, 2019.
Cummins Allison’s annual sales amount to approximately $190 million, with about a half of this amount generated from recurring service contracts. Crane Co. management sees an opportunity to improve the target’s operating margins, currently at the mid-single-digit level, and bring them in line with Crane’s operating margin figures of 18% for this segment, with a long-term margin outlook of 18% to 22%. It is expected that the acquisition will add approximately 16% of sales growth to Crane’s Payment & Merchandising Technologies business in 2020.
‘Cummins Allison and CPI [Crane Payment Innovations] products are based on similar core technologies related to cash and coin sorting, counting and validation. And we expect sharing of technology and R&D across the two businesses. We see substantial synergies, most notably with material cost and supply chain, manufacturing productivity and R&D’, said Max H. Mitchell, Crane’s President & Chief Executive Officer during the company’s latest earnings call with investors and analysts.