Stanley Black & Decker entered into an agreement to acquire Infastech, a manufacturer and distributor of specialty engineered fastening technologies located in Hong Kong, from CVC Capital Partners and Standard Chartered Private Equity Ltd. for $850 million in cash.
With revenues of approximately $500 million and more than 2,000 employees, Infastech designs, manufactures and distributes highly?engineered fastening technologies and applications for a diverse blue-chip customer base in the industrial, electronics, automotive, construction and aerospace end markets. More than half of Infastech’s 2011 revenues were generated in the Asia-Pacific region and, once combined with Emhart, Stanley Black & Decker’s engineered fastening platform, the enlarged business will generate close to 40 percent of its revenues from this high-growth region, according to Stanley.
Infastech’s product portfolio includes the Avdel, Elco and iForm brands.
“Infastech is both a highly accretive acquisition and a perfect strategic fit for Stanley Black and Decker,” Stanley president and CEO John F. Lundgren said in a statement. “It adds to our strong positioning in specialty engineered fastening, an industry which has solid growth prospects particularly in the global electronics, industrial and automotive end markets, and will further expand our global footprint with its strong concentration in fast-growing emerging markets. In addition, Infastech’s diverse revenue base, strong margins, and solid financial track record make it a meaningful addition to our portfolio.”
The transaction, which is subject to customary closing conditions, including regulatory approvals, is expected to close in the fourth quarter of 2012.
The announcement came less than a week after Lorre told analysts in a conference call on the day of the company’s quarterly earnings that Stanley is reviewing strategic alternatives for its hardware and home improvement group, which could include a divestiture of the business. Goldman Sachs was retained to assist with this evaluation.