WALTHAM, Mass. & LONDON - Crane NXT, Co. (NYSE: CXT), an industrial technology company, has signed a definitive agreement to purchase OpSec Security, a provider of brand protection and authentication solutions, for $270 million in cash. The transaction, subject to customary adjustments, is expected to close in the second quarter of 2024 and is anticipated to deliver double-digit returns on invested capital (ROIC) by the fifth year.
OpSec Security, known for serving recognized global brands, governments, and financial institutions, will bolster Crane NXT's capabilities in product and brand authentication technologies. Aaron W. Saak, President and CEO of Crane NXT, highlighted OpSec's alignment with their existing portfolio and the growing need for authentication services due to the rise of counterfeiting and digital piracy.
Dr. Selva Selvaratnam, CEO of OpSec, expressed enthusiasm for the merger, citing the combined strength that will better serve customer needs in securing both physical and digital brand assets. The acquisition excludes Zacco, a part of OpSec, which will remain with Investcorp. However, a continued business relationship between OpSec and Zacco post-acquisition is expected.
OpSec is projected to generate approximately $130 million in revenue for fiscal 2024, excluding Zacco. Crane NXT anticipates the acquisition to be accretive to its adjusted earnings per share (EPS) in 2025.
Crane NXT hosted a conference call and webcast today to discuss the details of the transaction, with access provided through the investor relations section of their website. Baird served as financial advisor, and Davis Polk & Wardwell LLP provided legal counsel to Crane NXT. Proskauer Rose LLP acted as legal counsel for OpSec.
Crane NXT, with a global presence and approximately 4,000 employees, specializes in securing physical products through advanced micro-optics technology, and its electronic equipment and software are centered around proprietary detection and sensing technologies.
OpSec Security, with over four decades of experience in optical security, delivers comprehensive authentication and brand integrity solutions, supporting brands across physical and digital domains.
This news is based on a press release statement and contains forward-looking statements that involve risks and uncertainties, including those detailed in Crane NXT's annual report and filings with the SEC. The company cautions against placing undue reliance on these forward-looking statements, which are not guarantees of future performance.
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