Stonebridge Technology Associates Advises Telequip Corporation on Sale to Crane Co.

July 24, 2006 - Stonebridge Technology Associates ("Stonebridge") announced today that it acted as exclusive sell-side advisor to Telequip Corporation, a manufacturer of coin dispensing systems, in its sale to the Merchandising Systems Group of Crane Co.  (NYSE: CR).

Client Background

Telequip Corporation (“Telequip” or the “Company”) is a leading provider of point-of-sale (POS) money handling solutions to leading retailers in North America and Europe.  The Company designs and manufactures patented, front- counter coin dispensing systems that serve as secure POS peripherals that dramatically reduce transaction time at checkout resulting in improved productivity and increased customer throughput.  Telequip also designs and produces embedded coin dispenser systems that serve as integral components to emerging self-service retail systems including self-checkout systems and cash-enabled transactional kiosks. Founded in 1974, Telequip has a long history of providing reliable money- handling systems to quick-serve restaurants and grocery, pharmacy, and convenience store establishments.  The Company’s customers include major retail chains such as Safeway, Albertsons, Walgreens, BP, McDonald’s, and Subway.  With its embedded product line, Telequip serves as the primary supplier of coin dispensing systems to NCR, IBM, Fujitsu, and Wincor Nixdorf, the four top OEM vendors of retail self-checkout systems.

Stonebridge Role

Telequip engaged Stonebridge Technology Associates to explore a sale of the business to a select group of prospective strategic acquirers, after it became apparent that market, competitive, and Company-specific conditions were optimal for such a transaction.  Having worked with the Company on a number of financial advisory assignments in the past, Stonebridge was uniquely qualified to assist Telequip’s Board of Directors in evaluating its liquidity options, preparing the Company for sale, and managing a competitive sale process.  Stonebridge worked closely with Telequip’s management team throughout the engagement, providing day-to-day senior-level advisory services that proved critical in successfully completing complex due diligence, letter-of-intent and purchase and sale agreement negotiations. 

Transaction Rationale

Crane Co., a NYSE publicly-traded, diversified industrial products manufacturer, acquired Telequip for approximately $45 million in cash to bolster its Crane Merchandising Systems (“CMS”) division’s growing presence in retail self-service.  With the addition of Telequip to CMS’s existing bill and coin validator businesses, Crane becomes the only company capable of offering a fully integrated cash payment solution to retail self-checkout and kiosk customers. 

About Stonebridge Technology Associates

Stonebridge Technology Associates, a division of Stonebridge Associates, LLC, specializes in providing merger and acquisition advisory and capital raising services to software, hardware, Internet, healthcare, and other technology product and service companies. Stonebridge Associates, LLC is a FINRA-registered investment banking firm that provides creative solutions to middle market and emerging growth companies in mergers and acquisitions, private placements of debt and equity securities, fairness opinions, and other strategic and financial advisory assignments. To learn more about Stonebridge, please visit our website at www.stonebrtech.com.