NEW BRITAIN, Conn.,
Dec. 1, 2021 /PRNewswire/ --
Stanley Black & Decker (NYSE:
SWK) today announced that it has successfully completed the
acquisition of two leading companies in the growing outdoor power
equipment industry, including purchasing the remaining 80 percent
ownership stake in MTD Holdings Inc ("MTD") and the acquisition of
Excel Industries ("Excel"). These transactions establish
Stanley Black & Decker as a U.S.
based global leader in outdoor products and complement the
Company's position as the fastest growing provider of cordless
electric outdoor power equipment with strong brands such as
DEWALT®, CRAFTSMAN® and BLACK+DECKER®.
Stanley Black & Decker's CEO,
James M. Loree commented, "The
combination of these two high-quality, complementary businesses
with our existing outdoor business creates a powerful growth engine
with approximately $4 billion in
annual revenue across the $25
billion-plus outdoor power equipment industry. These
transactions will be accretive to our 2022 earnings and have the
potential of further margin expansion as we integrate these great
businesses. Combined, this is a platform well positioned for growth
and to lead the electrification of outdoor products with a strong
portfolio of iconic brands, industry-leading innovation and
extensive engineering and manufacturing capabilities. In addition,
the acquisitions add deep customer relationships in retail and more
than 2,500 independent equipment dealer outlets serving the
professional category. We welcome the 8,100 associates from
MTD and Excel to Stanley Black &
Decker and look forward to a seamless integration
process."
The purchase price for the two transactions totaled $1.9 billion inclusive of standard purchase price
adjustments.
Inspiring people to care for and enjoy the outdoors, MTD is
known for innovative and award-winning lawn mowers, snow blowers,
trimmers, and outdoor power equipment for both residential and
commercial markets. The company was founded in 1932 and is
headquartered in Valley City,
Ohio. The MTD family of brands includes Cub Cadet®,
Troy-Bilt®, Robomow®, Rover®, and WOLF-Garten® – all backed by a
strong network of MTD support focused on uncompromising quality,
service and value through advanced manufacturing. MTD brands and
products can be found in leading mass retailers and independent
retail channels, including home improvement and hardware stores,
independent dealers, and farm supply stores. MTD has
state-of-the-art manufacturing facilities in North America and Europe, and a global distribution network.
Founded and based in Hesston,
Kansas, Excel is a leading designer and manufacturer of
premium commercial and residential turf equipment under the
distinct brands of Hustler Turf Equipment (Hustler) and BigDog
Mower Co. (BigDog). In 1964, Excel introduced The Hustler, creating
an entirely new product category now known as the zero-turn mower.
Excel serves 1,400 active independent equipment dealer outlets that
stock, sell and service Hustler and BigDog products in the United States and Canada.
EPS Outlook
For 2022, the Company continues to expect these acquisitions to
contribute approximately $0.50 of EPS
accretion. Stanley Black &
Decker is incorporating $0.20 -
$0.30 of deal related charges into
its full-year 2021 GAAP earnings per share guidance as referenced
in our October 28, 2021 earnings
release and in an 8K filed on
November 12, 2021. Accordingly, the
Company is updating GAAP guidance to $9.70 - $10.05
(From $10.00 - $10.25). There is no change to the
full-year 2021 non-GAAP adjusted EPS guidance range of $10.70 - $10.90.
About Stanley Black & Decker
Headquartered in New Britain, Connecticut, Stanley
Black & Decker, an S&P 500 company, is a leading $14.5
billion global diversified industrial with 56,000 employees in
more than 60 countries who make the tools, products and solutions
to deliver on its Purpose, For Those Who Make The World. The
Company operates the world's largest tools and storage business
featuring iconic brands such as DEWALT®, STANLEY®,
BLACK+DECKER® and CRAFTSMAN®; the world's second largest
commercial electronic security company; and is a global industrial
leader of highly engineered solutions within its engineered
fastening and infrastructure businesses. Learn more
at www.stanleyblackanddecker.com
Investor Contacts:
Dennis Lange
Vice President, Investor Relations
dennis.lange@sbdinc.com
(860) 827-3833
Cort Kaufman
Director, Investor Relations
cort.kaufman@sbdinc.com
(860) 515-2741
Christina Francis
Director, Investor Relations
christina.francis@sbdinc.com
(860) 438-3470
Media Contacts:
Shannon Lapierre
Chief Communications Officer
shannon.lapierre@sbdinc.com
(860) 259-7669
Debora Raymond
Vice President, Public Relations
debora.raymond@sbdinc.com
(203) 640-8054
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: certain forward-looking guidance of earnings per share
and projections of the anticipated impact of these acquisitions;
MTD and Excel's business complementing and expanding Stanley Black & Decker's existing
operations; cost and revenue synergies; growth and margin expansion
opportunities; anticipated accretion, return on capital and
one-time acquisition-related charges; and operational
efficiencies.
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 known and unknown
risks, uncertainties and other 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: failure to successfully
integrate MTD and Excel and achieve expected cost and revenue
synergies; failure to achieve expected growth, margin expansion,
accretion or return on capital; or the acquisition-related charges
being greater than anticipated.
Forward-looking statements made herein are also subject to risks
and uncertainties, described in: Stanley
Black & Decker's 2020 Annual Report on Form 10-K, its
subsequently filed Quarterly Reports on Form 10-Q; and other
filings Stanley Black & Decker
makes with the Securities and Exchange Commission. In addition,
actual results could differ materially from those suggested by the
forward-looking statements. 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.
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