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
Headquartered in the USA,
Stanley Black & Decker (NYSE:
SWK) is a global leader in tools and outdoor operating
manufacturing facilities worldwide. Guided by its purpose – for
those who make the world – the Company's more than 50,000 diverse
and high-performing employees produce innovative, award-winning
power tools, hand tools, storage, digital tool solutions, lifestyle
products, outdoor products and engineered fasteners to support the
world's makers, creators, tradespeople and builders. The Company's
iconic brands include DEWALT®, BLACK+DECKER®, CRAFTSMAN®, STANLEY®,
CUB CADET® and HUSTLER®. Recognized for its leadership in
environmental, social and governance (ESG), Stanley Black & Decker strives to be a force
for good in support of its communities, employees, customers and
other stakeholders. To learn more visit:
www.stanleyblackanddecker.com.
Investor
Contacts
|
|
Dennis Lange
|
Christina
Francis
|
Vice President,
Investor Relations
|
Director, Investor
Relations
|
dennis.lange@sbdinc.com
|
christina.francis@sbdinc.com
|
(860)
827-3833
|
(860)
438-3470
|
|
|
Media
Contacts:
|
|
Debora
Raymond
|
|
Vice President, Public
Relations
|
|
debora.raymond@sbdinc.com
|
|
(203)
640-8054
|
|
Cautionary Note Regarding Forward-Looking
Statements
Stanley Black & Decker makes
forward-looking statements in this press release which represent
its expectations or beliefs about future events and financial
performance. Forward-looking statements are identifiable by words
such as "believe," "anticipate," "expect," "intend," "plan,"
"will," "may" and other similar expressions. In addition, any
statements that refer to expectations, projections or other
characterizations of future events or circumstances are
forward-looking statements. Forward-looking statements made in this
press release, include, but are not limited to, statements
concerning: consummation of the Infrastructure sale transaction;
the Company's ability to maximize value for shareholders through
active portfolio management and the impact of the transaction to
fund debt reduction; supporting the Company's capital allocation
strategy; and Infrastructure revenue and EBITDA margin
expectations.
You are cautioned not to place undue reliance on these
forward-looking statements. These forward-looking statements are
not guarantees of future events and involve risks, uncertainties
and other known and unknown factors that may cause actual results
and performance to be materially different from any future results
or performance expressed or implied by such forward-looking
statements, including, but not limited to, the failure to
consummate, or a delay in the consummation of, the Infrastructure
sale transaction for various reasons; (including but not limited to
failure to receive, or delay in receiving, required regulatory
approvals and meet customary closing conditions); and failure to
realize the expected benefits of the Company's value creation, debt
reduction and capital allocation strategy.
Forward-looking statements made herein are also subject to risks
and uncertainties, described in: Stanley
Black & Decker's 2022 Annual Report on Form 10-K, its
subsequently filed Quarterly Reports on Form 10-Q; and other
filings Stanley Black & Decker
makes with the Securities and Exchange Commission. In addition,
actual results could differ materially from those suggested by the
forward-looking statements, and therefore you should not place
undue reliance on the forward-looking statements. Stanley Black & Decker makes no commitment
to revise or update any forward-looking statements to reflect
events or circumstances occurring or existing after the date of any
forward-looking statement.
The Company has provided an expectation of forward-looking
adjusted EBITDA margin, which is a non-GAAP measure. A
reconciliation of the differences between this non-GAAP
forward-looking measure and the corresponding GAAP measure
(expected net income) is generally not available without
unreasonable effort due to potentially high variability and
complexity as to the items that would be excluded from the GAAP
measure on a forward-looking basis, and would imply a degree of
precision that is inappropriate for this forward-looking
measure.
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SOURCE Stanley Black &
Decker