Crane Sells Technical Material Division for $72M

By Andy McKeeveriBerkshires Staff
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Crane is selling its Technical Material Division for $72 million; some 100 jobs are expected to stay in the area.

PITTSFIELD, Mass. — Crane & Co. has reached a deal to sell its Technical Material Division for $72 million.

According to spokesman Craig Conrad, Neenah Paper Inc. is purchasing the entire division and plans to retain both the two Pittsfield mills and the employees. The division doubled in size last year with a $5 million investment in the Hubbard Avenue building, which will be taken over by Neenah.

"Neenah Paper's intention is to continue to operate the two mills and keep the current employees," Conrad said, adding that the employee training and knowledge in the technical manufacturing field is a valuable commodity.

The division currently employs about 100.

Crane had put the division on the market at the beginning of this year, according to Conrad, after seeing many of the "global players" consolidate. It was determined that to compete, Crane had to link its division with a larger entity.

"Certainly Neenah is one of the major players," Conrad said. "To take it to the next level, it had to be part of a larger entity."

Neenah, headquartered in Alpharetta, Ga., is a publicly traded company reeling in net sales of approximately $850 million and has 1,875 employees, according to Conrad. Crane's technical division was doing about $50 million per year.

A release from Neenah said the sale is comprised of $64 million for the business and $8 million related to future cash tax benefits.

The Technical Materials Division produces nonwoven products used for filtration and other environmental and industrial uses.

"This acquisition clearly fits our strategy of expanding in profitable, performance-oriented markets with above-average growth rates, and provides a U.S. filtration presence that nicely complements our German-based filtration business," said John O'Donnell, chief executive officer, in a prepared statement released prior to the opening of the stock market Thursday.


"From a financial standpoint, this investment provides an attractive rate of return, is not dilutive to our mid-teen EBITDA (or returns excluding certain deductions) margins, and is accretive to earnings. Most importantly, CTM brings new technologies that provide a platform for future growth and increase our ability to be a global supplier of choice for our customers."

Conrad called the deal "a good fit" because not only does it preserve local jobs but also allows for Neenah to grow the business.

"We think this is a win-win for Crane Technical Materials employees and Neehan Paper," Conrad said.

The move is the latest change in business operations for Crane. It stationary division recently consolidated under one roof in North Adams and it acquired William Arthur Stationery. Meanwhile, its currency division continues operations and has been growing with international contracts.

"We'll certainly use the proceeds from the sale to go back into the business," Conrad said.

The deal with Neenah is expected to close in early July.

"This is a very successful outcome for all parties involved and we welcome Neenah Paper to the Berkshires," said Crane Chief Executive Officer Stephen P. DeFalco in a statement. "We thank all employees who worked to build this business and wish them the best of success in the future."


Tags: commercial purchase/sale,   Crane & Co.,   purchase & sales ,   

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Lanesborough Planners Bring STR, ADU, Signage Bylaws for Town Vote

By Breanna SteeleiBerkshires Staff

LANESBOROUGH, Mass. — The Planning Board held a public hearing on the much anticipated bylaws for short-term rentals, accessory dwelling units, and signage to be presented at the annual town meeting.

For the past few months, planners have diligently been working on wordage of the new bylaws after Second Drop Farm's short-term rental was given a cease and desist because the building inspector said town bylaws don't support them.

The draft bylaw can be found on the website.

The board voted on each of the four articles and heard public comment before moving to entertain any amendments brought forward.

A lot of discussion in the STR section was around parking. Currently the drafted bylaw for parking states short-term rentals require two parking spaces, and with three or more bedrooms, require three spaces but never more than five.

There were questions about the reasons for limiting parking and how they will regulate parking renters choose to park on the lawn or the street. Planners said it is not their call, that is up to the property owner and if it is a public street that would be up to the authorities.

Some attendees called for tighter regulation to make sure neighborhoods are protected from overflow.

Lynn Terry said she lives next to one of the rented houses on Narragansett Avenue and does not feel safe with all of the cars that are parked there. She said there can be up to 10 at a time on the narrow road, and that some people have asked to use her driveway to park. She thinks limiting to five cars based on the house, is very important.

The wordage was amended to say a parking space for each bedroom of the house.

Rich Cohen brought up how his own STR at the Old Stone School helps bring in money and helps to preserve the historic landmark. He told the board he liked what they did and wants to see it pass at town meeting, knowing it might be revised later on.

He said the bylaws now should not be a "one size fits all" but may need to be adjusted to help protect neighborhoods and also preserve places like his.

After asking the audience of fewer than 20 people, the board decided to amend the amount of time an short-term rental can be reserved to 180 days total a year in a residential zone, and 365 days a year in every other zone. This was in the hopes the bylaw will be passed and help to deter companies from buying up properties to run STRs as well as protecting the neighborhood character and stability.

They also capped the stay limit of a guest to 31 days.

Cohen also asked them to add "if applicable" to the Certificate of Inspection rule as the state's rules might change and it can help stop confusion if they have incorrect requirement that the state doesn't need.

The ADU portion did not have much public comment but there were some minor amendments because of notes from KP Law, the town counsel.

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