Crane NXT Goes for Growth as a Newly Independent Company

Crane NXT has announced the completion of its separation from Crane Co., the US-based industrial products and processes conglomerate, and its launch as an independent, publicly traded company. Crane NXT began trading on the New York Stock Exchange on 4 April under the ticker ‘CXT’, in celebration of which the leadership team rang the New York Stock Exchange’s Closing Bell® that day. Crane NXT is headed by CEO and President Aaron W Saak, who was appointed last November.

Bell ringing at the NY Stock Exchange to mark Crane NXT trading as an independent company. Aaron Saak, President and CEO (centre) is flanked by Crane NXT’s management including Crane Currency President Sam Keayes (3^rd from left) and CPI president Jan-Hinrik Bauwe (5^th from left).

Crane Co. announced its intention to separate into two companies just over a year ago (see CN April 2022), with the objective of optimising investment and capital allocation, accelerating growth, and unlocking shareholder value. Crane NXT takes on the payments side of the business, what was knownx as Payments and Merchandising Technologies, whilst the aerospace/electronics and process flow businesses now form Crane Company.

Crane NXT has approximately 4,000 employees with 15 manufacturing facilities across the US, UK, Mexico, Japan, Switzerland, Germany, Sweden, and Malta, and 10 R&D centres. It is active in 60 countries, with combined sales of $1.34 billion, 40% of which is recurring or reoccurring business, and operating profit of $333 million, resulting in a margin of 25%. The company’s five-year plan includes a target of $3 billion in sales by 2028.

Under the new structure, Crane NXT has four business units - Crane Currency, Crane Authentication, Crane Payment Innovations and Nippon Conlux.

Crane Currency, which was acquired by Crane Co. in 2018, continues as the papermaker, banknote printer and developer of micro-optic based security features. Of the $1.34 billion in sales, Crane Currency accounts for $460 million, and has seen 15% CAGR in sales since 2013. Over the same period, the number of banknotes featuring its micro-optic technology products MOTION®, RAPID HD®, BREEZE® and MOTION SURFACE® has grown almost fivefold, to number 136 by the end of last year.

Crane Payment Innovations (CPI) is a merger of a number of companies acquired over the years by Crane Co. - including NRI (a German-based coin validation and dispensing equipment supplier), Cash Code (specialists in niche applications for bill validation and dispensing devices), Telequip (coin dispensing equipment) and Money Controls (payment solutions for coins and bills). In 2013, Crane acquired MEI Conlux, a market leader in payment technologies for the transportation, gaming, retail service payment and vending markets and, in 2020, note and coin handling specialist Cummins Allison.

CPI’s portfolio now includes components for currency, coin and card payment devices, self-service retail and bank office processing solutions, aftermarket support and software solutions for service optimisation, efficiency and analytics. Sales in 2022 were $870 million, bolstered by the arrival of Cummins Allison.

Crane Authentication was set up as a separate division of Crane Currency in 2019 to service the brand protection market and, whilst company information doesn’t reveal sales to date, it states these are on target to double in 2023.

And finally, Nippon Conlux, acquired in 2013 as part of the MEI deal, is a manufacturer of coin and bill validation devices for vending machines and related equipment that serves the Japanese market.

According to Crane NXT, growth will be based on the three pillars of Secure, Detect and Authenticate, and on not only expanding the existing businesses in light of growing demand, further internationalisation and increased automation, but also targeting its strategy on what it terms ‘near market adjacencies’. These include access control and payment verification, industrial detection and sensing systems, and product authentication, including track and trace.

In its presentation to investors accompanying the separation, Crane NXT placed considerable emphasis on the company’s track record in successful mergers and acquisitions, made successful by integrating businesses into the Crane Business System.

According to Sam Keayes, President of Crane Currency, ‘as a market leader in trusted solutions that secure banknotes, Crane Currency has a strong track record in executing the Crane Business System. Our embrace of its priorities of Safety, Quality, Delivery, Cost and Growth allow us to deliver consistent quality, customer satisfaction, business growth, career opportunities for associates, and financial success. We see this capability as extendable into future acquisitions, helping Crane NXT to deliver synergies, grow businesses and improve profitability.’

www.cranenxt.com