STAMFORD, CT -- Crane Co. said it has signed an agreement to purchase 100% equity interest in payment systems giant MEI from Bain Capital and Advantage Partners for approximately $820 million on a cash- and debt-free basis. There is an MEI Conlux Holdings incorporated in the U.S. and another in Japan, and together they are known as MEI.
The purchase price is 9.6 times greater than MEI's estimated 2012 EBITDA of $85 million. Crane Merchandising Systems, a unit of Crane Co., and MEI both develop payment solutions for unattended transaction systems in the vending and amusement sectors, as well as for transportation, gaming and retail, among other industries.
Crane said that it intends to finance the acquisition through a combination of cash on hand and additional debt. Commitments are in place to cover all financing needs to facilitate the transaction, which is expected to close in the second quarter of 2013.
MEI has customers in over 100 countries, employs 820 people and had sales of about $400 million in 2012. From 2009 to 2012, MEI's sales have grown at a 13% compound annual growth rate and EBITDA margins have increased to 21%. On a pro forma basis, the combined sales of MEI and CMS's payment products will reportedly be $575 million in 2012.
To read the whole story go to Vending Times. Story previously published by Vending Times, Nick Montano.