Stanley sells attachment tools business

Stanley Black & Decker has entered into a definitive agreement to sell Stanley Infrastructure, the company’s attachment and handheld hydraulic tools business, to Epiroc AB, a Swedish manufacturer of mining and infrastructure equipment in business for more than 80 years, for $760 million in cash.

“The sale of Infrastructure demonstrates our commitment to maximizing shareholder value through active portfolio management,” said Donald Allan, Jr., president and CEO at Stanley Black & Decker.

Infrastructure is expected to generate approximately $450 to $470 million in revenue with a mid-to-high teens adjusted EBITDA margin in FY2023, said the firm.

Stanley Black & Decker said it expects to utilize the cash proceeds of the transaction, net of modest taxes, to reduce debt.

“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,” said Allan.

The company said it 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, said the firm, 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.

“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,” said Allan.