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“Our goal is to provide AP distributors and their customer base with the very best levels of product quality, service and support,” ST. LOUIS, – Crane Co. (NYSE: CR), a diversified manufacturer of engineered industrial products, announced it has entered into an agreement to purchase certain assets of Automatic Products International (APi), a privately held manufacturer of vending equipment based in St. Paul, Minnesota. The acquisition includes Automatic Products’ extensive distribution network, product line and parts business. Crane will initially purchase distribution assets and will purchase manufacturing assets after a transition of several months to facilitate the move of APi manufacturing to the Crane Merchandising Systems facility in St. Louis, Missouri. API will manufacture products exclusively for Crane during this transition period. The purchase does not include API’s manufacturing facility located in St. Paul, Minnesota.“With a combined tenure of 137 years, AP and CMS have impressive records of success that have earned each company esteem and recognition for being the best providers in the global vending industry,” said CMS president Brad Ellis. “This strategic union creates an organization that will be more efficient than the sum of its parts. We envision strong value coming from APIs talent and engineering skills, combined with their knowledge of the distributor organization and their approach to a different customer base. The acquisition will make CMS an even more efficient full line vending manufacturer in an increasingly competitive North American market.” According to Ellis, the business strategy will be to keep separate front end organizations. API sales, service and engineering personnel will immediately join CMS. The API organization will be maintained separately in the Minneapolis/St. Paul area. “Our goal is to provide AP distributors and their customer base with the very best levels of product quality, service and support,” Ellis said. The benefits of this acquisition will create the following business advantages: • The dual distribution strategy of separate, but complementary direct and indirect distribution organizations will enable stronger penetration of market channels, market segments and geographic areas. • Better value to customers via more choice of products and source of supply and service. • Ensures the long-term value of the installed AP equipment base. • Enhances the future value of the operators’ business. “CMS has been preparing for accelerated business growth since 2001 with the implementation of the acclaimed Crane Co. Operational Excellence program and lean manufacturing initiatives. In spite of depressed industry volumes, Crane has aggressively invested in its facilities, manufacturing equipment and its people to position the business for growth opportunities. With nearly 500,000 sq. ft. of space and additional room constantly being cleared through kaizen events, we have abundant space and resources to accommodate substantial volume. Our focus on quality, delivery, cost, safety and growth will remain uncompromised”, Ellis said. ABOUT API — Founded in 1949, API is a family owned business having headquarters and a production facility in St. Paul, Minnesota. API is a leading U.S. manufacturer of glass front merchandisers for snacks, confectionery, food and beverages. APi products include: Studio Series ST and Premier 130 Series of glass front merchandisers for snack/confectionary, food and hot beverages.API sells to independent operators through the broadest and most experienced distributor network in the US, including 35 U.S. and three Canadian distributor locations. An International office located in Wolverhampton, UK serves as base for the over 40 countries outside North America where AP does business. Distributor relationships average more than 26 years. ABOUT CMS — Crane Merchandising Systems is North America’s largest manufacturer of a full line of food, snack and beverage vending machines. Vending equipment products are sold under the trade names of National Vendors, GPL and Stentorfield, a range of hot drink machines manufactured in the UK. The Company’s other businesses are being organized to create an enterprise solution for vending operators. Streamware provides vending management software to benefit operator accountability and facilitate improved efficiency. National Rejectors (NRI), is a leading provider of coin changers and validators. These CMS businesses are located in St. Louis, Boston, Buxtehude, Germany and Chippenham, England. In January 2006, the Company acquired CashCode Co. Inc. Located in Concord, Ontario, CashCode manufactures banknote validators for use in a variety of niche applications in the vending, gaming, retailing and transportation industries. This acquisition is a strong complementary fit, as NRI is a leader in coin validation systems and CashCode is a leader in bill validation. The expanded customer base, geographic presence and product portfolio can be leveraged by all CMS businesses. Crane Co. is a diversified manufacturer of engineered industrial products. Founded in 1855, Crane provides products and solutions to customers in the aerospace, electronics, hydrocarbon processing, petrochemical, chemical, power generation, automated merchandising, transportation and other markets. The Company has five business segments: Aerospace & Electronics, Fluid Handling, Engineered Materials, Merchandising Systems, and Controls. Crane has approximately 10,500 employees in North America, South America, Europe, Asia and Australia. Crane Co. is traded on the New York Stock Exchange (NYSE:CR). For more information, visit www.craneco.com. June 6, 2006 |
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