Stanley Black & Decker to Sell Aerospace Manufacturing Unit to Howmet Aerospace in $1.8 Billion Deal
In a significant move that highlights its strategic financial objectives, Stanley Black & Decker, a leading global player in tools and household products, has announced its decision to divest the Consolidated Aerospace Manufacturing (CAM) business. This segment specializes in the production of vital fasteners, fittings, and engineered components for the aerospace and defense sectors. The agreement, valued at $1.8 billion, marks an important milestone for both Stanley and the acquiring entity, Howmet Aerospace.
Chris Nelson, President and CEO of Stanley Black & Decker, emphasized that this divestment aligns with the company's ongoing commitment to maximizing shareholder value while concentrating on expanding prominent brands within their portfolio. He said, "Divesting CAM reflects our ongoing dedication to enhancing shareholder value and focusing on growing our biggest brands and businesses." The proceeds from the sale are projected to substantially reduce Stanley's debt, moving them closer to their target leverage ratio of 2.5 times net debt to adjusted EBITDA.
The sale comes at a time when CAM is projected to generate revenue between $405 and $415 million for the fiscal year of 2025, with an adjusted EBITDA margin nearing the high teens. Nelson expressed confidence that CAM will continue to prosper within Howmet Aerospace, benefiting from its robust market presence and resources. Until the transaction is finalized, expected in the first half of 2026 pending regulatory approval, CAM will remain part of Stanley’s continuing operations and won’t be classified as a discontinued operation.
CAM has established itself as a leading global manufacturer, known for its trusted brands such as Aerofit, Voss, and QRP, and is renowned for providing intricate and high-performance components for major aircraft platforms, including commercial jets manufactured by Boeing and Airbus. The company's innovative approach and dedication to quality have made it a vital player in both the aerospace and defense industries, supplying components that range from quick-release pins to sophisticated tube assemblies.
Founded in 1843, Stanley Black & Decker has a storied history as a global leader in manufacturing tools and outdoor products. The company employs approximately 48,000 individuals around the world, creating a diverse range of inventive power tools, hand tools, and engineered fasteners, designed to serve builders, tradespeople, and DIY enthusiasts effectively. Stanley’s premium brands include DEWALT®, CRAFTSMAN®, STANLEY®, and BLACK+DECKER®. The divestiture of CAM is part of a broader strategy aimed at optimizing the company's portfolio and enhancing its financial position, allowing for more agile capital allocation in the future.
The forward-looking statements in Stanley Black & Decker's press release underscore the potential uncertainties surrounding the deal, as the successful completion is contingent on various factors, including necessary regulatory approvals. However, the company remains optimistic about the prospects of creating shareholder value through this transaction and future strategic initiatives.
For more information on Stanley Black & Decker and its products, visit their official website or follow them on social media platforms. As Stanley continues to redefine its focus, this sale represents a pivotal shift in position, with both Stanley and Howmet poised to leverage their respective strengths in the industry.
Chris Nelson, President and CEO of Stanley Black & Decker, emphasized that this divestment aligns with the company's ongoing commitment to maximizing shareholder value while concentrating on expanding prominent brands within their portfolio. He said, "Divesting CAM reflects our ongoing dedication to enhancing shareholder value and focusing on growing our biggest brands and businesses." The proceeds from the sale are projected to substantially reduce Stanley's debt, moving them closer to their target leverage ratio of 2.5 times net debt to adjusted EBITDA.
The sale comes at a time when CAM is projected to generate revenue between $405 and $415 million for the fiscal year of 2025, with an adjusted EBITDA margin nearing the high teens. Nelson expressed confidence that CAM will continue to prosper within Howmet Aerospace, benefiting from its robust market presence and resources. Until the transaction is finalized, expected in the first half of 2026 pending regulatory approval, CAM will remain part of Stanley’s continuing operations and won’t be classified as a discontinued operation.
CAM has established itself as a leading global manufacturer, known for its trusted brands such as Aerofit, Voss, and QRP, and is renowned for providing intricate and high-performance components for major aircraft platforms, including commercial jets manufactured by Boeing and Airbus. The company's innovative approach and dedication to quality have made it a vital player in both the aerospace and defense industries, supplying components that range from quick-release pins to sophisticated tube assemblies.
Founded in 1843, Stanley Black & Decker has a storied history as a global leader in manufacturing tools and outdoor products. The company employs approximately 48,000 individuals around the world, creating a diverse range of inventive power tools, hand tools, and engineered fasteners, designed to serve builders, tradespeople, and DIY enthusiasts effectively. Stanley’s premium brands include DEWALT®, CRAFTSMAN®, STANLEY®, and BLACK+DECKER®. The divestiture of CAM is part of a broader strategy aimed at optimizing the company's portfolio and enhancing its financial position, allowing for more agile capital allocation in the future.
The forward-looking statements in Stanley Black & Decker's press release underscore the potential uncertainties surrounding the deal, as the successful completion is contingent on various factors, including necessary regulatory approvals. However, the company remains optimistic about the prospects of creating shareholder value through this transaction and future strategic initiatives.
For more information on Stanley Black & Decker and its products, visit their official website or follow them on social media platforms. As Stanley continues to redefine its focus, this sale represents a pivotal shift in position, with both Stanley and Howmet poised to leverage their respective strengths in the industry.
Topics General Business）
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