Securitas completes acquisition of Stanley Security
July 22, 2022 at 07:28 am EDT
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Stockholm, Sweden -- The acquisition of Stanley Security is now completed and is consolidated into Securitas as of July 22, 2022. Securitas will present the strategy of the new group as well as new financial targets on August 24, 2022.
On December 8, 2021, Securitas announced it had signed an agreement to acquire the Electronic Security Solutions business from Stanley Black & Decker Inc. for a purchase price of MUSD 3,200 on a debt and cash free basis. The acquisition is expected to create compelling sales growth and be immediately operating margin accretive to the group.
70 billion dollar market
In an official corporate statement on the acquisition the company said, "we anticipate significant commercial opportunities and innovation potential with over 500,000 existing, as well as new, clients in the attractive BUSD 70 electronic security market. We will create a leading platform to accelerate growth and synergies and expect substantial operating margin improvement over time". All regulatory conditions were approved as communicated on July 14 and the transaction has been completed today.
Transformational acquisition
"This transformational acquisition makes us a strong provider of tech-enabled security solutions and a leading partner to our clients on a global scale. With our combined client proposition and our strong sales structure, we expect to deliver higher, more profitable growth than before. Going forward, approximately 50 percent of our profit contribution will be generated through high-margin technology and solutions sales. We are extremely pleased that the acquisition now is formally completed, and I want to welcome all of Stanley Security's clients and employees into the Securitas Group," says Magnus Ahlqvist, President and CEO of Securitas.
Funded via debt financing and rights issue
The acquisition is financed by a bridge facility, which Securitas plans to refinance by a mix of long-term debt financing and a rights issue which the company expects to launch in September. The rights issue will amount to the SEK equivalent of MUSD 915 as previously communicated.
Stanley Black & Decker, Inc. specializes in the design, manufacturing and marketing of tools and engineering solutions for professional, industrial and construction and consumer use. Net sales break down by family of products as follows:
- electric tools and accessories (71.1%): tools and electric devices (drills wire, sanders, saws, grinders, batteries, etc.), garden tools (shears, cutting edge, trimmers, aerators , grinders, chainsaws, etc.), vacuum cleaners, lamps, lights, battery chargers, starter batteries, power converters, hand tools (measuring and leveling tools, planes, hammers, knives, blades, screwdrivers, saws, etc.), consumer mechanics tools (wrenches and sockets), plastic tool boxes, pneumatic tools and fasteners (nail guns, staplers, staples, etc.);
- industrial products (16.2%): professional and automotive mechanics tools (wrenches, sockets, electronic diagnostic tools, etc.), storage systems, plumbing, heating and air conditioning tools (pipe wrenches, pliers, tubing cutters, etc.), hydraulic tools, etc.;
- access and security products (12.7%): automatic doors, door closers, emergency exit devices, locking mechanisms, integrated security devices, etc.
Net sales are distributed geographically as follows: the United States (60.5%), Canada (4.7%), Americas (4.2%), France (4%), Europe (19.2%) and Asia (7.4%).