Stanley Black & Decker (NYSE: SWK):
- Acquisition Expands Stanley Black & Decker’s Industrial Franchise, Engineered Fastening Platform & Footprint In Emerging Markets;
- Highly Complementary Fit With Existing Emhart Teknologies’ Engineered Fastening Business;
- Increases Scale, Expands Global Presence, And Opens New End Markets For Specialty Fastening Growth
Stanley Black & Decker (NYSE: SWK), an S&P 500 global diversified industrial company, announced today that it has entered into a definitive agreement to acquire Infastech, a leading global manufacturer and distributor of specialty engineered fastening technologies headquartered in Hong Kong, from CVC Capital Partners and Standard Chartered Private Equity Limited for USD$850 million in cash.
With revenues of approximately USD$500 million and more than 2,000 employees, Infastech is one of the world’s leading producers of engineered mechanical fasteners and one of the largest Asia‐based global players in the specialty mechanical fastener market. Infastech designs, manufactures and distributes highly‐engineered fastening technologies and applications for a diverse blue-chip customer base in the industrial, electronics, automotive, construction and aerospace end markets. More than half of Infastech’s 2011 revenues were generated in the Asia-Pacific region and once combined with Emhart, Stanley Black & Decker’s engineered fastening platform, the enlarged business will generate close to 40% of its revenues from this high growth region. Total company revenues from the emerging markets will increase to approximately 16%, an important step towards the company’s mid-decade goal of 20%+. Infastech’s comprehensive product portfolio, including leading brands Avdel®, ELCO® and iForm TM, provides innovative, patented and proprietary technologies and customized solutions to customers in more than 150 countries worldwide. The combined engineered fastening platform will generate approximately half of its revenues from automotive manufacturing, a third from industrial fastening applications and 20% from high growth verticals such as electronics. With the acquisition of Infastech, the engineered fastening platform will be the first of the company’s recently identified new growth platforms to achieve its mid-decade goal of $1 - $2 billion in revenue.
President and Chief Executive Officer John F. Lundgren commented, “Infastech is both a highly accretive acquisition and a perfect strategic fit for Stanley Black and Decker. It adds to our strong positioning in specialty engineered fastening, an industry which has solid growth prospects particularly in the global electronics, industrial and automotive end markets, and will further expand our global footprint with its strong concentration in fast-growing emerging markets. In addition, Infastech’s diverse revenue base, strong margins, and solid financial track record make it a meaningful addition to our portfolio. Led by an experienced and well-respected management team, Infastech is an industry leader with a comprehensive product portfolio, reputation for excellence and longstanding relationships with leading end-market customers. It is an excellent complement to our current Emhart Teknologies engineered fastening business and will broaden our product offering while deepening our IP portfolio and R&D capabilities. Additionally, we see meaningful opportunities to generate significant cross-selling into new market segments and to implement our Stanley Fulfillment System within Infastech’s operations throughout the integration process and beyond.”