The Tools business of Newell Brands - including industrial cutting, hand and power tools brands Irwin and Lenox - is to be acquired by Stanley Black and Decker for $1.95 billion.
The purchase is set to boost Stanley Black and Decker's presence in the global tools industry.
According to the press statement, Newell offers strong brands and products that are complementary to Stanley Black and Decker as well as LTM revenues of around $760 million with low to mid-single digit average sales growth since 2011. Newell Tools has a global manufacturing footprint and 2,500 employees around the world.
"Newell Tools is an important step in our quest to further strengthen our presence in the global tools industry, said Stanley Black & Decker's President and CEO James M Loree.
"The addition of the iconic Lenox brand and very strong Irwin brand, as well as their associated power tool accessory and hand tool products, opens up exciting new sources of global growth in similar ways, albeit on a smaller scale, to what Black + Decker did in recent years. Thus, the acquisition of Newell Tools, our first major acquisition since 2013, will provide both a source of inorganic growth in year one and an organic boost thereafter. SFS 2.0, our operating system, with its growth enhancing elements of digital excellence, commercial excellence and breakthrough innovation will also be deployed to rev up organic growth. This transaction, with our multi-faceted approach to revenue expansion, is entirely consistent with our strategy of driving above-market growth in a low growth world."
