Crane refutes Circor's claims, insists its offer is 'best option' for shareholders

US industrial products group Crane has hit back at Circor after the control technology company said its unsolicited $45 a share bid was "low value" and "opportunistic".

Crane said in a statement that Circor's claims are "highly unrealistic" and illustrate why its "superior" all-cash offer represents "the best option" for Circor shareholders.

Crane said on 21 May that it would pay $45 per share in cash for Circor, which at the time represented a 47% premium to the stock's closing price the previous day. But Circor said on Monday that the "highly conditional" offer was not in the best interests of its shareholders.

Crane's president and chief executive officer Max Mitchell responded on Tuesday, arguing that Circor's short-term plan is "yet another set of empty promises".

"This, coupled with Circor's track record of repeatedly missing its own targets, significant underperformance, and value destruction, make it extremely clear that Crane Co’s $45 per share offer represents the superior option, with certain and attractive value," he said.

"Circor shareholders have both publicly and privately expressed their frustration with Circor's ability to drive value for them. We urge them to tender their shares to encourage Circor's board to engage with us in good faith negotiation."

Crane said Circor's target of earnings before interest, tax, depreciation and amortisation growth of 37% by 2020 is "a level of performance that is unlikely". The company also pointed out that Circor has missed all five-year targets set back in 2014, including organic revenue growth, adjusted operating margin, adjusted earnings per share and free cash flow.

"Even though Circor's new 2020 targets are lower than the 2020 targets it set in 2017, weak performance since 2017 suggests it will also likely miss the revised goals," it said.