Stanley Black & Decker acquires Nelson Fastener Systems
While delivering its Q4 and year-end results, Stanley Black & Decker revealed that it had reached an agreement to acquire Nelson Fastener Systems.
Based in Elyria, Ohio, Nelson manufactures and distributes weld stud fasteners and application equipment for the construction and industrial markets. The $440 million cash deal does not include Nelson’s automotive stud welding business.
Stanley Black & Decker reported that Nelson had revenues of $200 million for the past 12 months. The deal is expected to close in the first half of 2018.
In a prepared statement, Stanley Black & Decker reported that Nelson enhances its engineered fastening’s presence in the general industrial end markets and expands the New Britain, Conn.-based manufacturer’s portfolio of highly engineered fastening solutions and will deliver cost synergies.
Stanley Black & Decker reported fourth quarter 2017 net sales of $3.4 billion, up 17% compared to net sales of $2.9 billion in the fourth quarter 2016. For the full year, 2017 net sales increased 12% to $12.7 billion from $11.4 in the prior year.
Stanley Black & Decker Q4 sales rise 17%
Stanley Black & Decker reported fourth quarter 2017 net sales of $3.4 billion, up 17% compared to net sales of $2.9 billion in the fourth quarter 2016.
For the full year, 2017 net sales increased 12% to $12.7 billion from $11.4 billion in the prior year.
Sales in the Tools & Storage division increased 26% during the quarter, with acquisitions contributing 13% growth and sales volume increasing 12%. The tool, hardware, and security manufacturer reported that total fourth quarter sales included 8% organic growth.
Industrial sales increased 4% during the quarter but security net sales decreased 4% during the period as bolt-on commercial electronic security acquisitions, currency, and volume were offset by the sale of the company’s mechanical security business, Stanley Black & Decker reported.
Stanley Black & Decker also revealed that it has signed a letter of intent to acquire the industrial business of Nelson Fastener Systems for $440 million. Based in Elyria, Ohio, Nelson Fastener Systems recently had revenues of $200 million, according to Stanley. Nelson manufactures and distributes weld stud fasteners and application equipment for the construction and industrial markets.
Net earnings for the quarter increased nearly 10% to $281.1 million from net earnings of $255.8 million in the fourth quarter 2016, Stanley Black & Decker reported. For the full year, net earnings grew approximately 24% to $1.2 billion from $969 million in 2016.
“Stanley Black & Decker delivered an impressive 2017, with strong execution aligned with our SFS 2.0 operating system,” commented James Loree, Stanley Black & Decker, president and CEO. “We are expecting 2018 to be another strong year as our continued focus on SFS 2.0 and our solid growth pipeline position us to deliver sustained above-market organic growth with margin expansion.”
Itochu deals for forest products company
Itochu Corp., the Tokyo-based general trading company that previously owned PrimeSource Building Products, entered a deal to acquire a forest products company.
Itochu Corp. and Itochu International agreed with E.R. Probyn, a Canadian corporation and Welco Lumber Company in the U.S. to acquire Alta Forest Products from Probyn and Welco.
Alta is described in the announcement as the largest wood fence board manufacturer in North America, producing 360 million board feet annually in its four (4) manufacturing plants located in the Pacific Northwest of the United States. Alta has established a leading position in the market for Western Red Cedar fence boards, a premium product, through – in the words of the announcement – “outstanding production efficiency driven by its specialized manufacturing process.”
Itochu Group is no stranger to the North American fence distribution industry through Itochu International’s ownership of Master-Halco, which operates five chain-link-fence manufacturing plants and 53 distribution centers in North America.
Through this acquisition, Itochu says it intends to strengthen its fencing business in North America further, capitalizing on the expected synergies between Alta’s leading wood fencing supply position and Master-Halco’s leading sales and distribution network.
Itochu sold PrimeSource in 2015.