Stanley Black & Decker buying 20% stake of MTD
The move gives Stanley Black & Decker a solid position in the outdoor power equipment market.
Stanley Black & Decker is purchasing a 20% stake in MTD Products Inc., the privately held manufacturer of outdoor power equipment.
The move gives Stanley Black & Decker a pivotal foothold in outdoor power equipment market.
Founded more than 85 years ago and headquartered in Valley City, Ohio, MTD’s brands include Cub Cadet, Troy-Bilt, and Remington, among others. MTD has state-of-the-art manufacturing facilities in North America, Europe and Asia, and a global distribution network
Under terms of the $234 million cash deal, Stanley Black & Decker has the option to acquire the remaining 80% of MTD beginning on July 1, 2021.
“This investment in MTD increases our presence in the $20 billion global lawn and garden market in a financially and operationally prudent way,” said James Loree, CEO and president of Stanley Black & Decker.
“We have always viewed outdoor products as an attractive growth category for us to expand our presence beyond handheld electric products,” Loree added. “This transaction gives us the opportunity to do that with a world class partner. MTD has a first-rate management team, talented employees and a mission, values and commitment to innovation that are very closely aligned with our own, and we are excited to move forward with them.”
With 2017 revenues in excess of $2 billion, MTD manufactures and distributes lawn tractors, zero turn mowers, walk behind mowers, snow throwers, trimmers, chain saws, utility vehicles and other outdoor power equipment for both residential and professional lawn and garden customers.
“MTD and Stanley Black & Decker are both proven leaders in our respective industries with iconic brands and world class capabilities,” said MTD’s Chairman and CEO Robert T. Moll. “We’re both passionate about innovation with complementary businesses. Ultimately, this will give us more resources to bring really exciting products to our consumers.”
This partnership enhances Stanley Black & Decker and MTD’s existing commercial relationship, which currently includes the manufacture of select outdoor products under the Craftsman brand.
Going forward, the two companies will work together to pursue revenue and cost opportunities, improve operational efficiency and introduce new and innovative products for professional and residential outdoor equipment customers, leveraging their respective portfolios of strong brands.
The transaction, which is expected to close in early 2019 and is subject to regulatory approvals and customary closing conditions.
In connection with the transaction, Stanley Black & Decker will appoint two representatives to MTD’s 11-member Board of Directors. Beginning in 2021, should Stanley Black & Decker choose to exercise its right to acquire the remaining 80 percent stake, the companies have agreed to a valuation multiple based on MTD’s expected 2018 EBITDA, with a sharing arrangement for any future EBITDA growth.
Hillman completes MinuteKey acquisition
MinuteKey provides self-service key duplicating kiosks.
The Hillman Group, a solution provider to the retail hardware market, has completed its acquisition of Minute Key Holdings Inc.
MinuteKey provides self-service key duplicating kiosks. Terms of the acquisition were not disclosed.
The transaction joins together Hillman’s full-service key cutting platform with MinuteKey’s self-service key cutting kiosks. The unified key-cutting platform will be backed by KeyHero, Hillman’s digital key backup and retrieval technology platform.
“Combining MinuteKey with Hillman marks an unprecedented step forward for the key hardware industry,” said Greg Gluchowski, president and CEO of Hillman. “Hillman and MinuteKey share very similar cultures, and by combining our strong manufacturing, product and technology development teams, the key duplication process will become an easier, more consistent and higher-quality experience for consumers than ever before.”
Randy Fagundo, president and CEO of MinuteKey will continue to lead the MinuteKey business.
“We are excited to begin integrating MinuteKey into Hillman and working together to enhance both the service level we bring to the market and the speed at which we develop and deploy game changing technology. The higher the penetration of revolutionary solutions like this, the more we can create and fast-track value for customers of all types.”
Based in Cincinnati, Ohio, Hillman is a North American provider of complete hardware solutions including products and merchandising.
Roseburg publishes verified EPDs
EPDs provide consumers with transparent, product-specific environmental information.
Roseburg Forest Products has published its first verified Environmental Product Declarations (EPDs).
The declarations provide standardized and objective information about the lifecycle environmental impact of many of the company’s wood products. EPDs also provide consumers with transparent, product-specific environmental information that has been independently validated.
The Springfield, Ore.-based forest products and building materials manufacturer said EPDs help purchasers better understand a product’s sustainable qualities and make more informed choices.
“Roseburg has begun using EPDs to better measure our environmental impact and to meet the demand from builders for ecologically responsible products,” Roseburg President and CEO Grady Mulbery said. “Wood products are durable, natural and renewable, and come from sustainably managed forests that capture carbon, making them among the most responsible building materials available today. These EPDs help us demonstrate that wood truly is a superior building product.”
Roseburg products are manufactured at locations across North America. The EPDs cover the cradle-to-gate impacts (raw material acquisition and manufacturing) for softwood plywood, particleboard, softwood lumber, I-Joist, laminated veneer lumber (LVL), hardwood plywood and thermally fused laminate (TFL) panels produced at all Roseburg manufacturing operations.