Crane Buys Bill-Machine Maker MEI Conlux for $820 Million

Crane will buy the company and its Japanese affiliate from Bain Capital Partners LLC and Advantage Partners LLP, according to a statement late yesterday. The price, which is on a cash and debt-free basis, is 9.6 times MEI's estimated earnings for this year, it said.Its preliminary forecast for next year includes "core" sales growth of as much as 4 percent, and earnings per share of $4.05 to $4.20

The deal will boost earnings by about 25 cents a share within the first year and by 30 cents on a pretax basis by 2015, Crane said. The Stamford, Connecticut-based company has expanded its payment-solutions business through three acquisitions since 2006. MEI's products include bill validators used in slot machines.

Crane will fund the deal using cash and additional debt. It expects to complete the transaction in the second quarter of 2013, according to the statement.The company reiterated that earnings this year will probably be in the lower half of its previously announced forecast range of $3.75 to $3.85 per share, excluding special items.