Stanley Black & Decker is buying Newell's tool business
Newell Brands has found a buyer for its tool business, having recently announced that it would divest roughly 10% of its portfolio as part of its new strategic growth plan.
Stanley Black & Decker has agreed to buy the business for $1.95 billion, boosting its already sizable tools and storage business with brands like Irwin and Lenox.
Newell's tool business had sales of $760 million in the last 12 months, and Stanley expects to net cost synergies savings of $80 million to $90 million by the third year after close.
Newell Brands has found a buyer for its tool business, having recently announced that it would divest roughly 10% of its portfolio as part of its new strategic growth plan.
Stanley Black & Decker has agreed to buy the business for $1.95 billion, boosting its already sizable tools and storage business with brands like Irwin and Lenox.
Newell's tool business had sales of $760 million in the last 12 months, and Stanley expects to net cost synergies savings of $80 million to $90 million by the third year after close.
"Newell Tools is an important step in our quest to further strengthen our presence in the global tools industry," said Stanley Black & Decker president and CEO James Loree. "The addition of the iconic Lenox brand and very strong Irwin brand, as well as their associated power tool accessory and hand tool products, opens up exciting new sources of global growth in similar ways, albeit on a smaller scale, to what Black + Decker did in recent years."
"Thus, the acquisition of Newell Tools, our first major acquisition since 2013, will provide both a source of inorganic growth in year one and an organic boost thereafter," added Loree. "SFS 2.0, our operating system, with its growth enhancing elements of digital excellence, commercial excellence and breakthrough innovation will also be deployed to rev up organic growth. This transaction, with our multi-faceted approach to revenue expansion, is entirely consistent with our strategy of driving above-market growth in a low growth world."
The deal is expected to close in the first half of 2017 and will be funded by a mix of cash and debt.
