Stanley Black & Decker announced a deal to acquire the tools business of Newell Brands, which includes the industrial cutting, hand tool and power tool accessory brands Irwin and Lenox, for $1.95 billion in cash.
“Newell Tools is an important step in our quest to further strengthen our presence in the global tools industry,” Stanley Black & Decker president and CEO James M. Loree said in a statement. “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.”
Newell Brands is selling other businesses to comply with its new corporate strategy, including the Völkl and K2 winter sports units; heaters, humidifiers and fans business, and Rubbermaid consumer storage business.
“Newell Brands’ new strategic plan establishes a sharp set of portfolio choices and investment priorities that will focus resources on the businesses with the greatest potential for growth,” Newell Brands CEO Michael Polk said in a statement. “The actions we are taking will strengthen the underlying performance of the company and help unlock the unique opportunity for transformative value creation connected to the combination of Newell Rubbermaid and Jarden Corporation. While our tools brands have been very good contributors to our results, we believe they will benefit from being part of Stanley Black & Decker, a global leader in the tools category.”
Stanley Black & Decker says it expects to fund the acquisition with a combination of available cash and debt.
The transaction, which is subject to customary closing conditions, including regulatory approvals, is expected to close in the first half of 2017.
For more, visit www.stanleyblackanddecker.com.
This article originally appeared in the November 2016 issue.