NEW BRITAIN - Stanley Black & Decker announced on Wednesday that it has entered an agreement to acquire a 20 percent stake in MTD Products for $234 million in cash.
The transaction is expected to be completed in 2019, subject to regulatory approvals and customary closing conditions. Stanley Black & Decker can acquire the remaining 80 percent stake of MTD Products starting July 1, 2021.
MTD Products Inc. is a privately owned global manufacturer of outdoor power equipment that started more than 85 years ago. The company is headquartered in Valley City, Ohio, and it has manufacturing facilities in North America, Asia and Europe. Remington, Cub Cadet and Troy-Bilt are some of MTD Products’ brands.
“MTD and Stanley Black & Decker are both proven leaders in our respective industries with iconic brands and world class capabilities,” MTD Products’ chairman and chief executive officer, Robert T. Moll, said. “We’re both passionate about innovation with complementary businesses. Ultimately, this will give us more resources to bring really exciting products to our consumers.”
With a global distribution network, MTD Products had revenues of more than $2 billion in 2017.
Equipment made and distributed by MTD Products includes walk-behind mowers, trimmers, lawn tractors, utility vehicles, zero-turn mowers, chain saws, snow throwers and other outdoor power equipment for commercial and residential customers.
“This investment in MTD increases our presence in the $20 billion global lawn and garden market in a financially and operationally prudent way,” James M. Loree, Stanley Black & Decker’s president and chief executive officer, said. “We have always viewed outdoor products as an attractive growth category for us to expand our presence beyond handheld electric products. This transaction gives us the opportunity to do that with a world-class partner. MTD has a first-rate management team, talented employees and a mission, values and commitment to innovation that are very closely aligned with our own, and we are excited to move forward with them.”
More about this transaction is available at www.stanleyblackanddecker.com .
Karla Santos can be reached at 860-801-5079 or firstname.lastname@example.org.