Transaction Advances Stanley Black & Decker's Portfolio Transformation and Sharpens Strategic Focus on its Core Businesses
NEW BRITAIN, Conn. , April 22, 2022 /PRNewswire/ -- Stanley Black & Decker (NYSE: SWK) today announced it has signed a definitive agreement for the sale of its automatic doors business, Access Technologies, to Allegion plc (NYSE: ALLE) for $900 million in cash. The Access Technologies business generated approximately $340 million in revenue in 2021 at a mid-teen adjusted EBITDA margin.
James M. Loree, Stanley Black & Decker's CEO, stated, "The sale of Access Technologies at an attractive valuation demonstrates our commitment to maximizing value for our shareholders through active portfolio management and will help fund our substantial return of capital. With a more focused portfolio – comprised of our Tools & Outdoor and Industrial segments – Stanley Black & Decker is positioned to capitalize on compelling opportunities for multi-year growth, margin expansion and long-term value creation for shareholders.
"On behalf of the entire Stanley Black & Decker organization, I want to thank our Access Technologies team members for their valuable contributions over the years. Allegion is a leader in the industry and I am confident the organization and the business are positioned for a great future of growth and success under their ownership."
Access Technologies patented the first hands-free door operator in 1931 and grew to become an industry leader providing state-of-the-art and fully integrated automatic door solutions. Access Technologies was the remaining piece of Stanley Black & Decker's Security segment following the definitive agreement entered into in December 2021 to sell its Commercial Electronic and Healthcare Security business lines to Securitas.
Net proceeds from the sale are expected to be used to fund Stanley Black & Decker's previously announced share repurchase program as well as debt reduction. The Company's overall capital allocation strategy reflects its commitment to generating substantial capital returns, maintaining strong investment grade credit ratings and pursuing opportunistic value-creating M&A.
The transaction is subject to regulatory approval and other customary closing conditions. The Company expects to record Access Technologies as discontinued operations when it reports first quarter results on April 28, 2022.
About STANLEY Access Technologies
STANLEY Access Technologies invented the automatic door and continues to lead the industry with state-of-the-art door solutions — and with a passion for innovation and low total cost of ownership. Today, the business manufactures, installs and services sliding, swinging, folding, transit/metro and revolving door systems, as well as an array of sensors, controls and security options. Learn more at www.stanleyaccess.com.
About Stanley Black & Decker
Headquartered in the USA, Stanley Black & Decker (NYSE: SWK) is the world's largest tool company operating nearly 50 manufacturing facilities across America and more than 100 worldwide. Guided by its purpose – for those who make the world – the company's more than 60,000 diverse and high-performing employees produce innovative, award-winning power tools, hand tools, storage, digital tool solutions, lifestyle products, outdoor products, engineered fasteners and other industrial equipment to support the world's makers, creators, tradespeople and builders. The Company's iconic brands include DEWALT, BLACK+DECKER, CRAFTSMAN, STANLEY, Cub Cadet, Hustler and Troy-Bilt. Recognized for its leadership in environmental, social and governance (ESG), Stanley Black & Decker strives to be a force for good in support of its communities, employees, customers and other stakeholders. To learn more visit: www.stanleyblackanddecker.com.
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Cautionary Note Regarding Forward-Looking Statements
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: consummation of the Access Technologies sale transaction; the company's ability to maximizing value for shareholders through active portfolio management and the impact of the transaction to fund substantial return of capital; the Company's ability to capitalize on compelling opportunities for multi-year growth, margin expansion and long-term value creation for shareholders; ; and the Company's capital allocation strategy and share repurchase program and the amount, timing and results in terms of shareholder value therefrom.
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 risks, uncertainties and other known and unknown 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, the Access Technologies sale transaction for various reasons; (including but not limited to failure to receive, or delay in receiving, required regulatory approvals and meet customary closing conditions); the failure to undertake or complete, or a delay in the timing of, the share repurchase program; and failure to realize the expected benefits of the Company's capital allocation strategy and share repurchase program.
Forward-looking statements made herein are also subject to risks and uncertainties, described in: Stanley Black & Decker's 2021 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, and therefore you should not place undue reliance on 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