NEW BRITAIN, Conn., Sept. 13, 2021 /PRNewswire/ -- Stanley Black & Decker (NYSE: SWK) today announced that it has entered into a definitive agreement to acquire Excel Industries for $375 million in cash.
Excel is a leading designer and manufacturer of premium commercial and residential turf-care equipment under the distinct brands of Hustler Turf Equipment (Hustler) and BigDog Mower Co. (BigDog). With over $375 million of revenue forecasted in 2021, Excel serves approximately 1,400 active independent equipment dealer outlets that stock, sell and service Hustler and BigDog products in the United States and Canada. Excel has a strong legacy of innovation and launched the first hydrostatic zero-turn mower in 1964. The Company is located in Hesston, Kansas, and has approximately 600 employees.
Stanley Black & Decker's CEO James M. Loree commented, "This is a strategically important bolt-on acquisition as we build an outdoor products leader. Excel brings a range of premier, commercial grade and prosumer turf-care equipment, an extensive dealer network, a talented team and a loyal customer base."
The acquisition will be modestly accretive to Stanley Black & Decker's EPS in year one, and accretive to EPS by approximately $0.15 - $0.20 by year three, excluding charges. The transaction, which has been approved by a majority of Excel's shareholders, is subject to purchase price adjustment provisions and customary closing conditions, including receipt of required regulatory approvals. The transaction will be funded with cash on hand and proceeds from borrowings.
Stanley Black & Decker, an S&P 500 company, is a leading $14.5 billion global diversified industrial with 56,000 employees in more than 60 countries who make the tools, products and solutions to deliver on its Purpose, For Those Who Make The World. The Company operates the world's largest tools and storage business; the world's second largest commercial electronic security company; and is a global industrial leader of highly engineered solutions within its engineered fastening and infrastructure businesses. Learn more at www.stanleyblackanddecker.com.
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Cautionary Note Regarding Forward-Looking Statements
Stanley Black & Decker makes forward-looking statements in this press release which represent its expectations or beliefs about future events and financial performance. Forward-looking statements are identifiable by words such as "believe," "anticipate," "expect," "intend," "plan," "will," "may" and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Forward looking statements made in this press release, include, but are not limited to, statements concerning: the consummation of Stanley Black & Decker's acquisition of Excel Industries; revenue forecasts for Excel for 2021; the Excel Industries business complementing and expanding Stanley Black & Decker's existing operations; cost and growth synergies; and anticipated accretion to earnings per share.
You are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements are not guarantees of future events and involve known and unknown risks, uncertainties and other factors that may cause actual results and performance to be materially different from any future results or performance expressed or implied by such forward-looking statements, including, but not limited to, the failure to consummate, or a delay in the consummation of, Stanley Black & Decker's acquisition of Excel Industries; failure to successfully integrate Excel Industries and achieve expected cost and growth synergies; or the acquisition-related charges being greater than anticipated.
Forward-looking statements made herein are also subject to risks and uncertainties, described in: Stanley Black & Decker's 2020 Annual Report on Form 10-K, its subsequently filed Quarterly Reports on Form 10-Q; and other filings Stanley Black & Decker makes with the Securities and Exchange Commission. In addition, actual results could differ materially from those suggested by the forward-looking statements. Stanley Black & Decker makes no commitment to revise or update any forward-looking statements to reflect events or circumstances occurring or existing after the date of any forward-looking statement.
SOURCE Stanley Black & Decker