Stanley Black & Decker has entered into an agreement to sell its Hardware & Home Improvement Group to Spectrum Brands Holdings for $1.4 billion in cash. The transaction is expected to close by the first quarter 2013.
The Hardware & Home Improvement Group (HHI) with 2011 revenues of $940 million is a provider of residential locksets, residential builder’s hardware and plumbing fixtures marketed under the Kwikset, Weiser, Baldwin, Stanley, National and Pfister brands (www.bdhhi.com).
President and Chief Executive Officer, John F. Lundgren, commented, “The sale of HHI is consistent with our strategy of strengthening our position as a diversified industrial company while maintaining the significant upside potential of a housing market recovery through our $5 billion CDIY portfolio. While HHI is a healthy and profitable business, its characteristics are inconsistent with Stanley Black & Decker’s strategic objectives of diversifying our revenue base through further expansion into targeted end markets with higher growth and margin profiles, including emerging markets. Going forward, we remain focused on executing the promising organic growth initiatives we discussed on our July earnings call that should boost the company’s organic growth rate by two to three points annually in the coming years.”
“We are very pleased to be acquiring HHI, which is a successful, well-managed business with attractive market positions, international growth potential and established brands. We believe HHI has a bright future as part of Spectrum Brands, and look forward to supporting its product development and growth initiatives to fully realize HHI’s great potential,” said Dave Lumley, Chief Executive Officer of Spectrum Brands.
Stanley Black & Decker, an S&P 500 company, 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, and infrastructure solutions. The company is based in New Britain, CT (www.stanleyblackanddecker.com).
© 2012 PEPD • Private Equity’s Leading News Magazine • 10-9-12