Stanley Black & Decker Completes Previously Announced Acquisition Of Infastech
Acquisition Expands Stanley Black & Decker's Industrial Franchise, Engineered Fastening Platform & Footprint In Emerging Markets;
Highly Complementary Fit With Existing Stanley Engineered Fastening Business;
Increases Scale, Expands Global Presence, And Opens New End Markets For Specialty Fastening Growth
NEW BRITAIN, Conn.--(BUSINESS WIRE)-- Stanley Black & Decker (NYS: SWK) , an S&P 500 global diversified industrial company, announced today that it has successfully completed its acquisition of Infastech, a leading global manufacturer and distributor of specialty engineered fastening technologies headquartered in Hong Kong, from CVC Capital Partners and Standard Chartered Private Equity Limited for USD$850 million in cash. This transaction was originally announced on July 23rd, 2012.
With revenues of approximately USD$580 million and more than 2,000 employees, Infastech is one of the world's leading producers of engineered mechanical fasteners and one of the largest Asia‐based global players in the specialty mechanical fastener market. 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 2012 revenues were generated in the Asia-Pacific region and once combined with Stanley Engineered Fastening, the enlarged business will generate close to 40% of its revenues from this high growth region. Total company revenues from the emerging markets will increase to approximately 16%, an important step towards the company's mid-decade goal of 20%+.
Infastech's comprehensive product portfolio, including leading brands Avdel®, ELCO® and iForm®, provides innovative, patented and proprietary technologies and customized solutions to customers in more than 150 countries worldwide. The combined engineered fastening platform will generate approximately half of its revenues from automotive manufacturing, a third from industrial fastening applications and 20% from high growth verticals such as electronics. With the acquisition of Infastech, the engineered fastening platform will be approximately $1.5 billion in annual revenues, in line with the Company's mid-decade revenue goal for the platform of $1 - $2 billion.
Stanley Black & Decker continues to expect the transaction to result in annual cost savings of approximately USD$25 million by 2015. The acquisition is also expected to be immediately accretive toStanley Black & Decker'searnings per share (EPS), with accretion of USD$0.20 per share in 2013 and USD$0.40 per share in 2015, excluding acquisition-related after-tax charges of approximately $30 million which will largely be incurred in 2013.
Stanley Black & Decker, an S&P 500 company, is a diversified global provider of hand tools, power tools and related accessories, mechanical access solutions and electronic security solutions, engineered fastening systems, healthcare solutions, infrastructure solutions and more. Learn more at www.stanleyblackanddecker.com.
Infastech® is one of the world's largest producers of engineered mechanical fasteners with revenues exceeding USD$500 million and an industry heritage built around its lead brands Avdel®, ELCO® and iForm®, dating back as far as 1922. Learn more at www.infastech.com.
Cautionary Note Regarding Forward-Looking Statements
Stanley Black & Decker makes forward-looking statements in this press release which represent its expectations or beliefs about future events and financial performance. Forward-looking statements are identifiable by words such as "believe," "anticipate," "expect," "intend," "plan," "will," "may" and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Forward looking statements made in this press release, include, but are not limited to, statements concerning: Infastech's business complementing and expanding Stanley Black & Decker's existing operations and international presence; growth prospects; impact on revenues, cost savings; accretion to earnings and other potential benefits and synergies of the transaction.
You are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements are not guarantees of future events and involve risks, uncertainties and other known and unknown factors that may cause actual results and performance to be materially different from any future results or performance expressed or implied by such forward-looking statements, including, but not limited to,general economic conditions and conditions affecting the industries in which Stanley Black & Decker and Infastech operate; Stanley Black & Decker's ability to successfully integrate Infastech's operations and employees with Stanley Black & Decker's existing business; the ability to realize anticipated growth, synergies and cost savings; and Infastech's performance and maintenance of important business relationships.
Additional risks, uncertainties and other factors that could cause or contribute to actual results differing materially from those expressed or implied in the forward looking statements include, without limitation, those set forth under Item 1A Risk Factors of Stanley Black & Decker's Annual Report on Form 10-K and any material changes thereto set forth in any subsequent Quarterly Reports on Form 10-Q, or those contained in Stanley Black & Decker's other filings with the Securities and Exchange Commission. Stanley Black & Decker makes no commitment to revise or update any forward-looking statements to reflect events or circumstances occurring or existing after the date of any forward-looking statement.
Stanley Black & Decker
Kate White Vanek, 860-827-3833
Vice President, Investor & Government Relations
Tim Perra, 860-826-3260
Director, Global Communications
KEYWORDS: United States North America Connecticut
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