Stanley Black & Decker this week announced it has completed the previously announced sale of its Hardware & Home Improvement Group to Spectrum Brands Holdings for $1.4 billion in cash.
As previously disclosed, this tax-efficient transaction is expected to generate after-tax cash proceeds of $1.3 billion. More than 50 percent of the proceeds will be used to repurchase shares and a smaller portion will go towards modest debt reduction. The company will reinvest the remaining proceeds, together with existing offshore capital, to fund the previously announced Infastech acquisition, which is expected to close in the next 45 days. The company expects modest earnings per share dilution of $0.10 - $0.20 in 2013, which represents the net result of the sale of HHI partially offset by the favorable impact of the share repurchases and accretion from Infastech, a maker of engineered mechanical fasteners.
Spectrum Brands’ acquisition of HHI also includes certain assets of Tong Lung Metal Industry Co. Ltd., a Taiwanese manufacturer of residential and commercial locksets with facilities in Taiwan and the Philippines. Of the $1.4 billion cash purchase price, $100 million is being held in escrow pending the subsequent closing of the Tong Lung portion of the HHI acquisition, which is expected to occur in the first quarter of 2013.
Stanley Black & Decker, New Britain, Conn., 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.