SWK - Stanley Black & Decker Announces Agreement to Sell Attachment Tools Business | Benzinga
NEW BRITAIN, Conn., Dec. 15, 2023 /PRNewswire/ -- Stanley Black & Decker (NYSE:SWK) today announced it has entered into a definitive agreement to sell STANLEY Infrastructure ("Infrastructure"), the Company's attachment and handheld hydraulic tools business, to Epiroc AB (Nasdaq Stockholm: EPIA) for $760 million in cash.
Donald Allan, Jr., Stanley Black & Decker's President & CEO, stated, "The sale of Infrastructure demonstrates our commitment to maximizing shareholder value through active portfolio management. Simplification is a core tenet of our strategic transformation, and this transaction will help further sharpen our focus on value creation opportunities in our core businesses while supporting our capital allocation priorities. I am confident that Infrastructure is positioned for a future of innovation and growth with Epiroc and would like to thank all our team members for their valuable contributions over the years."
Infrastructure is expected to generate approximately $450 to $470 million in revenue with a mid-to-high teens adjusted EBITDA margin in FY2023. Stanley Black & Decker expects to utilize the cash proceeds of the transaction, net of modest taxes, to reduce debt.
Stanley Black & Decker expects to incur a pre-tax, non-cash charge of approximately $100 to $150 million related to the write-down of the Infrastructure net assets, which will be excluded from adjusted earnings. Until the transaction closes, the results of Infrastructure will remain in continuing operations and will not be reclassified as discontinued operations. The completion of the Infrastructure transaction is subject to regulatory approval and other customary closing conditions.
About STANLEY Infrastructure
STANLEY Infrastructure designs, manufactures, and sells attachments, typically used on excavators, and handheld hydraulic and battery-powered tools for applications in infrastructure, construction, scrap recycling, demolition, and railroad infrastructure. Its strong and innovative brands include LaBounty, Paladin, Pengo and Dubuis. Learn more at www.stanleyinfrastructure.com.
About Stanley Black & Decker