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Key Takeaways
- Stanley Black & Decker Inc. sold its attachment and handheld hydraulic tool unit to Sweden’s Epiroc AB for $760 million.
- The deal is part of Stanley’s efforts to streamline its operations.
- The company said it would use the cash from the sale to pay down debt.
Stanley Black & Decker Inc. (SWK) said Friday that it is selling its attachment and handheld hydraulic tool business to Sweden-based mining equipment maker Epiroc AB as part of its effort to focus more on its core business.
The toolmaker said Epiroc will pay $760 million in cash for the unit, known as Stanley Infrastructure, and it will use the money to reduce debt.
Chief Executive Officer (CEO) Donald Allan Jr. said the move “demonstrates our commitment to maximizing shareholder value through active portfolio management.” He added that “simplification” is a core tenant of Stanley’s strategic transformation, “and this transaction will help further sharpen our focus on value creation opportunities in our core businesses while supporting our capital allocation priorities.”
The company didn’t provide a timeline for when the deal was expected to be completed. It noted that the division will remain active and won’t be classified as discontinued operations until the sale is closed. Stanley said the sale will cause a pretax, non-cash charge of approximately $100 million to $150 million related to the write-down of assets.
Shares of Stanley Black & Decker were down 2.78% Friday afternoon at $98.67, , but they’ve gained by a third of their value this year.
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