Crane Co. Reports Complaint Filed by the Department of Justice to Block the Sale of Its Engineered Materials Segment

Rhea-AI Summary

Crane Co. (NYSE: CR) announced that the Department of Justice (DOJ) has filed a complaint to block the sale of its Engineered Materials segment to Grupo Verzatec due to antitrust concerns. The company plans to engage with the DOJ and Verzatec to address these issues. The press release includes forward-looking statements subject to risks and uncertainties, including the impact of the COVID-19 pandemic, economic conditions, regulatory approvals, and potential asbestos claims, which could affect financial performance and shareholder value.

Positive

• Crane Co. is proactively addressing DOJ antitrust concerns regarding the sale of its Engineered Materials segment.
• The company expects to engage in a process with Verzatec and the DOJ to resolve the antitrust issue.

Negative

• The DOJ's complaint could delay or obstruct the sale of the Engineered Materials segment, impacting future revenue.
• Possible risks from the ongoing COVID-19 pandemic may adversely affect operations and financial performance.

STAMFORD, Conn.--(BUSINESS WIRE)-- Crane Co. (NYSE: CR), a diversified manufacturer of highly engineered industrial products, reported today that the Department of Justice (“DOJ”) has filed a complaint to enjoin the sale of its Engineered Materials segment to Grupo Verzatec, S.A. de C.V. (“Verzatec”). In the normal course, the Company expects to engage in a process with Verzatec, the DOJ and /or the courts to address the DOJ’s antitrust concerns regarding a minor overlap in a narrow range of material used in certain commercial building applications.

This press release may contain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements are based on the management’s current beliefs, expectations, plans, assumptions and objectives regarding Crane Co.’s future financial performance and are subject to significant risks and uncertainties. Any discussions contained in this press release, except to the extent that they contain historical facts, are forward-looking and accordingly involve estimates, assumptions, judgments and uncertainties. There are a number of factors, including risks and uncertainties related to the ongoing COVID-19 pandemic, that could cause actual results or outcomes to differ materially from those expressed or implied in these forward-looking statements. Such factors also include, among others: uncertainties regarding the extent and duration of the impact of the COVID-19 pandemic on many aspects of our business, operations and financial performance; changes in economic, financial and end-market conditions in the markets in which we operate; fluctuations in raw material prices; inflationary pressures; supply chain disruptions; the financial condition of our customers and suppliers; economic, social and political instability, currency fluctuation and other risks of doing business outside of the United States; competitive pressures, including the need for technology improvement, successful new product development and introduction and any inability to pass increased costs of raw materials to customers; our ability to value and successfully integrate acquisitions, to realize synergies and opportunities for growth and innovation, and to attract and retain highly qualified personnel and key management; the risks that any regulatory approval that may be required for the Engineered Materials divestiture is delayed or is not obtained, that the Engineered Materials divestiture does not close or that the related transaction agreement is terminated, or that the benefits expected from the Engineered Materials divestiture will not be realized or will not be realized within the expected time period; a reduction in congressional appropriations that affect defense spending and our ability to predict the timing and award of substantial contracts in our banknote business; adverse effects on our business and results of operations, as a whole, as a result of increases in asbestos claims or the cost of defending and settling such claims; adverse effects as a result of environmental remediation activities, costs, liabilities and related claims; investment performance of our pension plan assets and fluctuations in interest rates, which may affect the amount and timing of future pension plan contributions; and other risks noted in reports that we file with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 and subsequent reports filed with the Securities and Exchange Commission. Crane Co. does not undertake any obligation to update or revise any forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220317005925/en/

Jason D. Feldman

Vice President, Investor Relations

203-363-7329

www.craneco.com

Source: Crane Co.

FAQ

What prompted the DOJ to file a complaint against Crane Co. regarding the sale to Grupo Verzatec?

The DOJ filed a complaint due to antitrust concerns over a minor overlap in materials used in commercial building applications.

How might the DOJ's complaint affect Crane Co.'s operations?

The complaint could delay or prevent the completion of the sale of the Engineered Materials segment, impacting revenue projections.

What are the potential risks mentioned in Crane Co.'s press release?

The risks include uncertainties related to COVID-19, regulatory approvals, and possible financial impacts from asbestos claims.

What is Crane Co.'s stock symbol?

Crane Co. is listed on the NYSE under the stock symbol CR.