Coinciding with its 2019 financial report, Stanley Black & Decker has revealed it is significantly boosting the Stanley Engineered Fastening business with the acquisition of CAM (Consolidated Aerospace Manufacturing LLC) for up to $1.5 billion.
Providing a platform to grow in the aerospace and defence sectors, the CAM acquisition will see it become part of the Stanley Engineered Fastening and component solutions portfolio. $200 million of the purchase price is to be held back, contingent on the Boeing 737 MAX receiving FCA authorisation to return to service and Boeing achieving certain production levels. 737 MAX production was recently halted following safety fears.
James M Loree, President & CEO, said: "Growing and diversifying our Industrial business through M&A is a key priority for the Company and a focus of our strategic capital deployment. Today we are excited to announce the acquisition of CAM which is an ideal platform asset to scale within our Engineered Fastening business and significantly adds to our exposure in the high growth, high margin aerospace and defense segment. CAM is a quality asset bringing well-recognized brands, a proven business model, an experienced management team and compelling cash flow characteristics which create an attractive pathway for profitable growth and shareholder returns."
Last year, the Engineered Fastening structure was revamped, including the launch of Optia and Integra.
New leadership for STANLEY Tools & Storage
Other big news wrapped up in the financial statement was a leadership change for the Tools & Storage unit, with EVP and President Jeffery D Ansell transitioning his responsibilities to Jaime A Ramirez, currently Senior VP and COO of Tools & Storage. When the transition is complete, Ansell will handle a strategic initiative to "reviatlise and accelerate growth" of the BLACK+DECKER brand to the end of 2021.
Engineer Fastening revenues flat in Q4
Full year revenues for the group were $14.4 billion, up 3% on 2018, all organic growth. However, Q4 organic revenues for the Engineered Fastening division (part of Stanley's 'Industrial' division) were flat as higher systems shipments and fastener penetration gains were offset by inventory reductions and lower production levels among industrial and automotive customers.
2019 highlights included the launch of the "most powerful" angle-lever cordless nutrunner.
DEWALT Flexvolt, Atomic and Xtreme boost North America
Tools & Storage net sales increased 1%, partially offset by currency (-1%). The 2% organic growth was led by North America (3%) and Europe (3%), more than offsetting a decline in emerging markets (-3%).
In North America, the Craftsman brand and innovations like DEWALT Flexvolt, Atomic and Xtreme were partially offset by declines in Canada and industrial-focused businesses.
