Stanley Black & Decker, Inc. completed the acquisition of the remaining 80% ownership stake in MTD Holdings Inc. for approximately 1.9 billion.
December 30, 2021
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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.
Stanley Black & Decker, Inc. (NYSE:SWK) completed the acquisition of the remaining 80% ownership stake in MTD Holdings Inc. for approximately 1.9 billion on December 1, 2021. In a related transaction, Stanley Black & Decker, Inc. also acquired Excel Industries. 8,100 associates from MTD and Excel are joining Stanley Black & Decker.
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%).