Citing objections raised by the Department of Justice, Crane Co. has terminated its deal to sell Crane Composites and the Engineered Materials division in which it operates.
Crane Composites manufactures fiber-reinforced plastic (FRP) composite materials supplied to RV OEMs.
Crane Composites was among assets sold in May 2021 to Grupo Verzatec S.A. de C.V. for $360 million.
In March 2022, the Department of Justice filed suit to block the sale, leaving the supplier’s future in limbo.
On Thursday, parent company Crane Co. said the Department of Justice’s objections led to the termination of the sale.
“Following continued objections from the Department of Justice over a minor overlap in a small segment of the Engineered Materials business,” President and CEO Max Mitchell said, “our agreement to sell that business has been terminated.”
The company said it worked with the department and Grupo Verzatec to address the concerns in the Department of Justice’s lawsuit.
“We engaged in a process to address the DOJ’s antitrust concerns regarding a minor overlap in a narrow range of material used in certain commercial building applications,” Crane Co. said. “However, the DOJ rejected the initial set of remedies proposed, and on May 26, 2022, Grupo Verzatec S.A. de C.V. terminated the sale agreement, and will pay a $7.5 million termination fee to Crane.”
Mitchell said the company will explore alternatives to the future of Crane Composites and its Engineered Materials division.
“As always, we will continue to assess our portfolio composition and structure,” Mitchell said, “and we will continue to explore alternatives for the outstanding Engineered Materials business in due course.”
