Stanley Black & Decker is selling its Mechanical Security businesses

Stanley Black & Decker is selling the majority of its Mechanical Security businesses to dormakaba for $725 million in cash.

This includes its commercial hardware brands BEST Access, phi Precision and GMT. Combined, these brands had LTM revenues and EBITDA of approximately $270 million and $52 million, respectively.

Stanley Black & Decker is selling the majority of its Mechanical Security businesses to dormakaba for $725 million in cash.

This includes its commercial hardware brands BEST Access, phi Precision and GMT. Combined, these brands had LTM revenues and EBITDA of approximately $270 million and $52 million, respectively.

"After an extensive evaluation of our Security business, we are sharpening our focus on areas within our portfolio which are strategically attractive," said president and CEO James Loree. "While BEST Access, phi Precision and GMT are healthy and profitable businesses, they are a better fit in dormakaba's portfolio and their divestiture will allow us to deploy capital in a more accretive and growth oriented manner.  With this transaction and our decision to retain the electronic security and automatic doors businesses, we have concluded our previously announced Security portfolio assessment."

Stanley's Sargent and Greenleaf brands were not included in the sale and will remain with the company. Its commercial electronic security and automatic doors businesses will also remain with the company.

"The commercial electronic security business, with its inherent linkage to the digital world provides both a stable recurring revenue stream and an opportunity to develop and market high value, high growth customer solutions incorporating IOT, cloud, advanced analytics and other emerging technologies," added Loree. "Our scale and global footprint in this business is an excellent platform to build upon, both organically and inorganically. Our automatic doors business also represents an attractive growth opportunity for market expansion through both core and breakthrough innovation. We remain focused on applying the principles of our proven operating system, SFS 2.0, to enhance the growth, profitability and asset efficiency of these businesses."

The transaction is expected to close in the first quarter of 2017, subject to customary closing conditions including required regulatory approvals.