Stanley acquires two big names in outdoor power
Stanley Black & Decker announced it has successfully completed the acquisition of two leading companies in the growing outdoor power equipment industry, MTD Holdings Inc., and Excel Industries.
“The combination of these two high-quality, complementary businesses with our existing outdoor business creates a powerful growth engine with approximately $4 billion in annual revenue across the $25 billion-plus outdoor power equipment industry,” said Stanley Black & Decker CEO, James M. Loree.
The purchase price for the two transactions, New Britain, Conn.-based Stanley Black & Decker said, totaled $1.9 billion inclusive of standard purchase price adjustments.
The world’s largest tool maker purchased the remaining 80% ownership stake in MTD Holdings Inc. The company provides cordless electric outdoor power equipment with brands such as DeWalt, Craftsman and Black+Decker.
Going forward to next year, Stanley Black & Decker said it will continue to expect these acquisitions to contribute approximately $0.50 of EPS accretion. The firm said it is incorporating $0.20 - $0.30 of deal related charges into its full-year 2021 GAAP earnings per share guidance.
“These transactions will be accretive to our 2022 earnings and have the potential of further margin expansion as we integrate these great businesses,” said Loree.
“Combined, this is a platform well positioned for growth and to lead the electrification of outdoor products with a strong portfolio of iconic brands, industry-leading innovation and extensive engineering and manufacturing capabilities,” said the CEO.
The company said MTD inspires people to care for and enjoy the outdoors. It is known for innovative and award-winning lawn mowers, snow blowers, trimmers, and outdoor power equipment for both residential and commercial markets. Founded in 1932, MTD is headquartered in Valley City, Ohio. The MTD family of brands includes Cub Cadet, Troy-Bilt, Robomow, Rover, and WOLF-Garten.
Founded and based in Hesston, Kansas, Excel is a leading designer and manufacturer of premium commercial and residential turf equipment under the distinct brands of Hustler Turf Equipment (Hustler) and BigDog Mower Co. (BigDog).
“The acquisitions add deep customer relationships in retail and more than 2,500 independent equipment dealer outlets serving the professional category,” said Loree. “We welcome the 8,100 associates from MTD and Excel to Stanley Black & Decker and look forward to a seamless integration process.”
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 theme: “Purpose, For Those Who Make The World.”
