Stanley Black & Decker (NYSE: SWK) announced today that it has entered into a definitive agreement to acquire International Equipment Solutions Attachments Group for $690 million in cash. Separately, the Company completed a $300 million share repurchase in July, bringing total share repurchases in 2018 to $500 million.
Stanley Black & Decker's President and CEO, James M. Loree commented, "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. 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 of high quality, performance-driven heavy equipment attachment tools for off-highway applications, with leading brands such as Paladin, Genesis and Pengo. Approximately 60% of the $400 million in LTM revenue is related to aftermarket applications. With the addition of IES Attachments, Stanley Black & Decker will operate a broad portfolio of attachment solutions and a meaningful platform for continued organic and acquisitive growth. The agreement excludes the IES cabs business sold under the Crenlo and other brand names.
The acquisition, which will be integrated with the Hydraulic Tools business within the Industrial segment, will be modestly accretive to Stanley Black & Decker's EPS in 2019, and accretive to EPS by approximately $0.25 - $0.30 by year three, excluding charges. The transaction, which is subject to customary closing conditions, including receipt of required regulatory approvals, will be funded with available cash and proceeds from borrowings.
Stanley Black & Decker, an S&P 500 company, is a diversified global provider of hand tools, power tools and related accessories, electronic security solutions, healthcare solutions, engineered fastening systems, and more. Learn more at www.stanleyblackanddecker.com.
