Stanley Black & Decker, Inc. (NYSE:SWK) agreed to acquire the remaining 80% ownership stake in MTD Holdings Inc. for $1.6 billion on August 16, 2021. The transaction will be funded with a combination of cash on hand and proceeds from debt incurrence, which Stanley Black & Decker expect to include support by new credit facilities. The total purchase price represents an adjusted LTM EBITDA multiple of approximately 8x.

Last twelve months revenues of MTD Holdings were over $2.5 billion. The transaction is subject to regulatory approvals and customary closing conditions and expected to close in 2021. As of November 12, 2021, the transaction is expected to close in the fourth quarter of 2021.

The acquisition is expected to be approximately $0.50 accretive to adjusted earnings per share in 2022, increasing to over $1.00 by 2025. JPMorgan Chase & Co. (NYSE:JPM) acted as financial advisor to MTD Holdings Inc. Leslie Overton, Daniel Bitton and David Pearl of Axinn, Veltrop & Harkrider LLP acted as legal advisor to Stanley Black & Decker.