Stanley Black & Decker makes Asian acquisition
Stanley Black & Decker has agreed to acquire Infastech, a global manufacturer and distributor of specialty engineered fastening technologies headquartered in Hong Kong, from CVC Capital Partners and Standard Chartered Private Equity Limited for $850 million in cash. The transaction, which is subject to customary closing conditions, including regulatory approvals, is expected to close in the fourth quarter of 2012.
With revenues of approximately $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, according to the press release announcing the deal.
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.
“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,” said John F. Lundgren, president and CEO of Stanley Black & Decker.
Sales jump 9.3% at Sherwin-Williams
The Sherwin-Williams Co. reported net sales of $2.57 billion for its second quarter, a 9.3% increase over sales of $2.35 billion in the same quarter of 2011.
Net income for the second quarter, which ended June 30, was $227.8 million, compared with $179.1 million a year ago.
Net sales in the Paint Stores Group increased 14.6% to $1.49 billion during the quarter; for the Consumer Group, net sales increased 5.9% to $397.7 million.
Commenting on the financial results, Christopher Connor, the paint supplier’s chairman and CEO, said: "We are pleased to report record sales and earnings per share in the second quarter and first half of 2012. Selling price increases implemented across all segments in the previous 12 months are gaining traction against the higher raw material costs.”
In its Paint Store Group, the company gained 20 new locations through openings and closings during the quarter. For the year, it anticipates opening 60 to 65 new stores.
In June, Sherwin Williams completed the acquisition of Geocel Corp., a provider of sealants and adhesives.
Conner said he anticipates an increase of consolidated net sales “in the mid-single digits” in the third quarter compared with the same quarter of 2011.
Headquartered in Cleveland, Sherwin-Williams manufactures and distributes coatings and related products to professional, industrial, commercial and retail customers. The company’s brands include Dutch Boy, Krylon, Minwax and Thompson’s Water Seal. Its products are sold through a chain of more than 4,000 company-operated stores, as well as mass merchandisers, home centers, independent paint dealers, hardware stores, automotive retailers and industrial distributors. Sherwin-Williams products are available in more than 109 countries.
Whirlpool sales rise slightly in U.S.
Whirlpool North America, a division of Whirlpool Corp., reported second-quarter sales of $2.5 billion, a 4% increase over its sales in the second quarter of 2011. Overall, North America unit shipments decreased approximately 2%, the company said, with its unit shipments of major appliances to the United States increasing approximately 1%.
The North America region reported operating profit of $235 million for the second quarter, ended June 30, 2012, compared with $76 million in the previous year. Strong continued margin improvements were driven by product price/mix and cost and capacity-reduction initiatives, which more than offset lower production levels and higher material costs, the company said.
Based on the current economic outlook, the company now expects full-year 2012 U.S. unit shipments to be flat to down 2%.
As a whole, Whirlpool Corp. reported second-quarter sales of $4.5 billion, compared with $4.7 billion in the corresponding period of 2011. Net earnings of $120 million were reported for the second quarter, compared with a net loss of $164 million a year ago.
“Our North America and Latin America businesses continue to perform extremely well, and we are pleased with our financial performance through the first half of the year," said Jeff Fettig, chairman and CEO of Whirlpool Corp. "Our ongoing business operating performance is well ahead of last year offsetting lower industry demand, volatile foreign currency and material inflation. We remain positive regarding our underlying business performance and are optimistic on recent U.S. housing trends exiting the second quarter.”
Based in Benton Harbor, Mich., Whirlpool is the world’s leading manufacturer and marketer of major home appliances. The company’s brands include Whirlpool, Maytag, KitchenAid, Jenn-Air and Amana.