NEW BRITAIN – Stanley Black & Decker announced on Tuesday that it entered an agreement to acquire International Equipment Solutions Attachments Group (IES Attachments) for $690 million.
With the recent acquisition, Stanley Black & Decker will operate a variety of attachment solutions and an important platform forc development.
The agreement will be integrated with the Hydraulic Tools business within the industrial segment of Stanley.
The acquisition will be accretive (meaning it will increase earnings per share) by approximately $0.25 - $0.30 by the third year, not including charges.
The negotiation is subject to closing conditions that include the receipt of required approvals and it will be funded with cash and proceeds from borrowings.
The acquisition does not include the IES cabs business that was sold under the Crenlo and other brand names.
“The acquisition of IES Attachments further diversifies our presence in the Industrial markets, creates an additional well-defined path for continued profitable growth and delivers compelling cash flow returns,” Stanley Black & Decker’s President and CEO, James M. Loree, said. “Consistent with our long-term capital allocation strategy, we continue to deploy a balanced approach, capitalizing on both M&A and opportunistic share repurchases. These actions announced today underscore our confidence in our ability to create long-term shareholder value as we continue our pursuit of the 22/22 vision.”
IES Attachments is a manufacturer that handles high quality, heavy equipment attachment tools for off-highway applications.
The company uses brands such as Paladin, Genesis and Pengo.
Aftermarket applications account to 60 percent of the $400 million in the last 12 months (LTM) revenue.
Share repurchases at Stanley Black & Decker happen generally when the business believes that the stock price is competitive relatively to the long-term value of the company, and it is a way of returning value to the shareholders.
Stanley Black & Decker also purchased a $300 million share in July. The New Britain-head-quartered company is a provider of electronic security solutions, hand tools, engineered fastening systems, healthcare solutions, power tools and related accessories and more.
To learn more about Stanley Black & Decker visit their website at stanleyblackanddecker.com.
Karla Santos can be reached at 860-801-5079.