SCTBF - Stanley Black & Decker to divest Security Business for $3.2B to Securitas; reaffirms full year guidance

Stanley Black & Decker (NYSE:SWK) has signed a definitive agreement for the sale of most of its Security assets to Securitas AB (OTCPK:SCTBF) for $3.2B in cash. The sale sharpens Stanley Black & Decker's strategic focus on its core businesses. The proposed transaction includes Stanley Black & Decker's Commercial Electronic and Healthcare Security business lines.  The businesses carry 2021 forecasted revenues of ~$1.7B with an adjusted EBITDA margin in the low double-digits, implying a purchase price multiple of ~16 trailing adjusted EBITDA.  Net proceeds from the sale are expected to be used to fund, in part, an ~$4B share repurchase which is planned to be completed in 2022. The transaction does not include Stanley Access Technologies, which is a leader in the industry with state-of-the-art automatic door solutions. The transaction is expected to close in the first half of 2022. The ~$4B share repurchase program is expected to commence in

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Stanley Black & Decker to divest Security Business for $3.2B to Securitas; reaffirms full year guidance