More power

Daily Freeman (Kingston, NY) - - BUSINESS -

Stan­ley Black & Decker shares jumped 3 per­cent Wednes­day after the power tool maker said it’s buy­ing Newell Brands’ tools divi­sion for $1.95 bil­lion in cash.

The unit in­cludes the in­dus­trial cut­ting, hand tool and power tool ac­ces­sory brands Ir­win and Lenox.

At­lanta-based Newell Brands an­nounced re­cently that it wanted to sell sev­eral di­vi­sions as part of a con­sol­i­da­tion to sharpen its port­fo­lio. It will con­sol­i­date its ex­ist­ing 32 busi­ness units into 16 op­er­at­ing di­vi­sions. This is Stan­ley Black & Decker’s first ma­jor ac­qui­si­tion since 2013. The buy­out is ex­pected to add ap­prox­i­mately 15 cents per share to earn­ings in the first year after the deal closes, ris­ing to about 50 cents per share by the third year. New Bri­tain, Con­necti­cut-based Stan­ley is also eye­ing cost sav­ings of about $80 mil­lion to $90 mil­lion by the third year after clos­ing the pur­chase, ex­pected in the first half of 2017.

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