Stanley Black & Decker, Inc. entered into a definitive agreement to acquire Excel Industries Inc. for approximately $380 million.
September 12, 2021
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Stanley Black & Decker, Inc. (NYSE:SWK) entered into a definitive agreement to acquire Excel Industries Inc. for approximately $380 million on September 12, 2021. The consideration is paid in cash. The transaction will be funded with cash on hand proceeds from borrowings.
The transaction is subject to purchase price adjustment provisions and customary closing conditions, including receipt of required regulatory approvals. The transaction has been approved by a majority of Excel's shareholders. The acquisition will be modestly accretive to Stanley Black & Decker's EPS in year one and accretive to EPS by approximately $0.15 - $0.20 by year three, excluding charges.
The acquisition is expected to close at the end of 2021. The transactions will be accretive to our 2022 earnings and have the potential of further margin expansion as we integrate these great businesses. Robert I. Townsend, Thomas E. Dunn, Kara L. Mungovan, Eric W. Hilfers, Aaron S. Cha, Matthew Morreale, Brian M. Budnick, Laurel R. Berkowitz, Megan Y. Lew, Anthony N. Magistrale and Paul A. Bryant of Cravath, Swaine & Moore LLP and Leslie Overton and Daniel Bitton of Axinn, Veltrop & Harkrider LLP acted as legal advisors to Stanley Black & Decker, Inc.
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%).
STANLEY BLACK & DECKER, INC. 
