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Crane Co., a diversified manufacturer of highly engineered industrial products, and Merrimac Industries Inc., a leader in the design and manufacture of RF microwave components, assemblies and micro-multifunction modules (MMFM®), announced that they have signed a definitive agreement for the acquisition of Merrimac by Crane. Crane will pay $16.00 cash per share of common stock of Merrimac and associated common stock purchase rights. Under the terms of the agreement, Crane will commence a tender offer to acquire all of the outstanding shares of common stock of Merrimac, and this transaction, which is subject to the satisfaction of customary conditions, is expected to close in the first quarter of 2010. This transaction is valued at approximately $52 M and represents a 40 percent premium to Merrimac shareholders based on the closing value of its common stock on December 22, 2009, and a premium of 70 percent based on Merrimac’s most recent 20-day average closing price. The agreement has been approved by the boards of directors of both companies.

“Merrimac has a strong product platform and a solid customer base for space and military applications that complements Crane’s leading microwave product offerings,” said Eric Fast, Crane's President and Chief Executive Officer. “We expect this acquisition will have a very slight dilutive impact on our 2010 earnings, but will be accretive in 2011.”

“The acquisition of Merrimac by Crane is a very attractive opportunity for our shareholders,” said Mason Carter, Merrimac’s Chairman and Chief Executive Officer. “As such, our board of directors unanimously approved this transaction.”