Crane Co. to Boost Growth with $1.15B Acquisition of Precision Sensors

Baker County, USA - Crane Co., a long-established name in the industrial manufacturing and technology sector, is making headlines with its plans to acquire Precision Sensors & Instrumentation (PSI) from Baker Hughes, an energy technology leader. This deal, valued at approximately $1.15 billion in cash, marks a significant step in Crane’s efforts to boost its footprint in key industries, including aerospace, nuclear, and process industries. According to Law360, the transaction is being facilitated by K&L Gates LLP for Crane and Baker & McKenzie LLP for Baker Hughes.

The acquisition agreement outlines that Crane Company (NYSE: CR) is set to take over PSI for $1,060 million, which is adjusted for expected tax benefits, yielding a net present value of around $90 million. Analysts anticipate PSI will generate sales of about $390 million and adjusted EBITDA of approximately $60 million in 2025, as detailed by Yahoo Finance.

Strengthening Capabilities

What does this mean for Crane? Simply put, it paves the way for enhanced capabilities across multiple sectors. Crane’s acquisition of notable PSI brands such as Druck, Reuter-Stokes, and Panametrics means they’re bolstering their offerings in pressure sensing for aerospace applications, significantly enlarging their nuclear business, and adding key technologies for measuring various liquids and gases in industrial processes.

Crane expects PSI to deliver long-term sales growth in the 4% to 6% range, along with an operating profit leveraging at around 35%. Such projections are vital for a company that has thrived on its mission-critical components since its inception in 1855, employing roughly 7,500 people globally.

Market Trends and Insights

This acquisition is happening against a backdrop of evolving trends in the industrial manufacturing (IM) sector. As reported by KPMG, the sector is facing a drop of over 20% in deal volume quarter-over-quarter for Q1 2025, although deal value actually rose by 5.2%. This paradox highlights a noticeable shift in how companies are navigating investments in the current economic climate.

The ongoing demand for strategic acquisitions, particularly in high-tech manufacturing and critical industries, is becoming more apparent as firms look to consolidate to achieve economies of scale while tackling both economic and geopolitical challenges. Crane’s decisive move to level up its technological capabilities and market presence comes at an opportune time, as the sector seems to be realigning itself amidst these pressures.

As the deal awaits regulatory approvals and customary closing conditions, which are expected to finalize by late 2025 or early 2026, Crane’s leadership seems confident about the company’s path forward. It’s clear that in a time when transformation is essential, this acquisition may just put Crane ahead of the curve in an increasingly competitive landscape.