Stanley Black & Decker Inc. has announced its intended acquisition of Newell Tools, the hand tools and accessories division of Newell Brands, pending regulatory approval and other customary closing conditions.
“Newell’s iconic cutting, hand tools and power tool accessory brands Lenox and Irwin will sit alongside our industrial, construction and DIY brands which include: FACOM, Mac Tools, Bostitch, Stanley, DEWALT, and Black+Decker, among others,” says Manoj Panikkal, General Manager Sub-Saharan Africa Stanley Black & Decker.
The acquisition of the Lenox and Irwin businesses will further drive world-class innovation across Stanley Black & Decker brands, drive efficiencies and increase the focus on the end-user across all verticals. Between now and when the acquisition closes, both companies remain independent in all respects and will continue to operate their respective businesses in a completely separate manner.
“Once approved our combined portfolios will enable us to dramatically enhance our product offering with even more comprehensive product solutions that will be delivered with our world-class service levels. We look forward to sharing the considerable opportunities that this acquisition will bring our organisations and to continuing to build our relationship with retailers and customers as Lenox and Irwin join Stanley Black and Decker after the acquisition closes,” continues Panikkal.
Bloomberg.com states in an article, “Stanley Black & Decker Inc. agreed to buy Newell Brands Inc.’s tools business for $1.95bn in cash, helping the workshop giant push deeper into consumer and industrial equipment. Stanley Black & Decker will gain the Irwin, Lenox and Hilmor brands as part of the transaction, which is expected to add 15 cents to earnings within a year of its completion. The division generated $760m in revenue over the past 12 months, according to Newell. It makes everything from industrial saw blades to screwdrivers.”
The article continues, “The acquisition tightens Stanley Black & Deckers’s grip on the tool market at a time of industry upheaval … For Newell, the sale helps streamline its sprawling product portfolio after its merger with Jarden Corp. in April … Investors applauded the deal, sending Stanley Black & Decker’s shares up as much as 4.3%.”
Reuters.com states in an article, “This would be Connecticut-based Stanley Black & Decker’s biggest deal since it was created through the $4bn all-stock merger of Stanley Works and Black & Decker Corp in 2010. Stanley Black & Decker expects the deal to result in savings of US$80m-US$90m by the third year after close. ‘Although the purchase price is dilutive prior to synergies, Stanley has a solid history of meeting or exceeding synergy targets,’ Wunderlich Securities analyst Liam Burke wrote in a note. The companies expect the deal to close in the first half of 2017.”