Stanley Black & Decker sells its security business
Stanley Black & Decker announced that it has completed the previously announced sale of most of its security assets to Securitas AB for $3.2 billion in cash.
“The completed sale of our security business is another major milestone in creating a more focused Stanley Black & Decker, leveraging our leadership position in tools and outdoor, as well as our highly engineered industrial business,” said Donald Allan, Jr., president and CEO for Stanley Black & Decker.
The sale includes Stanley Black & Decker’s commercial electronic and healthcare security business lines, called “Security.”
Security generated approximately $1.6 billion in revenue in 2021 with adjusted EBITDA margin in the low double-digits, said the company, implying a purchase price of approximately 16 times trailing adjusted EBITDA, which reflects the successful transformation of the business over the last several years.
Net proceeds from the sale are expected to fund debt reduction and the $2.3 billion share repurchase completed in the first quarter. This transaction was announced on December 8, 2021.
Founded in 1934, Securitas AB is a security services, monitoring, consulting and investigation group, based in Stockholm, Sweden. The group has over 300,000 employees in 53 countries worldwide.
Headquartered in New Britain, Connecticut, Stanley Black & Decker, founded in 1843, is the world’s largest tool company operating nearly 50 manufacturing facilities across America and more than 100 worldwide; guided by its purpose, “for those who make the world.”