Stanley Black & Decker (NYSE: SWK), an S&P 500 global diversified industrial company, announced today that it has successfully completed its acquisition of the Tools business of Newell Brands for $1.95 billion in cash. This transaction was originally announced on October 12, 2016.
Stanley Black & Decker's President and Chief Executive Officer, James M. Loree commented, "With the completion of the Newell Tools acquisition, we have further bolstered our presence in the global tools industry. The addition of the extraordinary Irwin® and Lenox® brands extends our reach into the plumbing and electrical trades and adds complementary products to our hand tool and power tool accessories businesses, allowing us to provide our customers and consumers with a more comprehensive, best-in-class offering. We welcome the associates of Newell Tools to Stanley Black & Decker and look forward to a seamless integration process."
Updated 2017 EPS Outlook
On March 9, 2017, Stanley Black and Decker updated its 2017 earnings per share ("EPS") outlook, reflecting the sale of the majority of its Mechanical Security business and the purchase of the Craftsman brand. At that time, the company increased its 2017 GAAP EPS outlook to $7.94 - $8.14 per share and its 2017 adjusted (excluding charges and the gain from the Mechanical Security sale) EPS outlook to $6.74 - $6.94 per share.
The Newell Tools transaction is expected to be immediately accretive to EPS, adding approximately $0.24 per share in 2017, excluding approximately $80 million of restructuring and other deal and integration-related costs, and approximately $40 million of non-cash inventory step-up charges. As a result, Stanley Black and Decker now expects 2017 GAAP EPS to be $7.63 - $7.83 per share, and adjusted EPS to be $6.98 - $7.18 per share.
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.
