Stanley Black & Decker to sell security business
NEW BRITAIN — Stanley Black & Decker, one of the world’s largest manufacturing companies, announced Wednesday that it has agreed to sell for $3.2 billion most of its security business to Sweden’s Securitas AB — a transaction that would mark one of the Connecticut firm’s largest deals.
The sale would include New Britain-headquartered Stanley’s Commercial Electronic and Health Care Security business lines, which have projected 2021 revenues of about $1.7 billion. Automatic-door services provider Stanley Access Technologies, where nearly all of Stanley’s Connecticutbased security employees work, would not be part of the sale.
Net proceeds from the sale are expected to partly fund approximately $4 billion in share repurchases, an initiative the company anticipates starting in the first quarter of 2022 and completing next summer.
“The sale of Security is consistent with our commitment to generating substantial shareholder value and allows us to sharpen our strategic focus on growing our core businesses while also returning capital to investors through a significant share buyback,” Stanley Black & Decker CEO James Loree said in a statement. “This transaction is a result of our active approach to portfolio management, and the attractive valuation we received reflects the investments we made in transforming our Security business over the last several years.”
Stanley officials expect to close the sale in the first half of 2022, but timing is “contingent upon receiving regulatory approvals and other customary closing conditions.”
Following the announcement, Stanley shares closed Wednesday at $192.22, up 3 percent from Tuesday.
Securitas, which is headquartered in Stockholm, represents one of the world’s largest securityservices companies. Employing approximately 355,000 people, it delivers guarding, electronic security, fire-and-safety and riskmanagement services to more than 150,000 clients.
“We are incredibly excited to join forces with Stanley Security and are confident that we will form a winning team,” Magnus Ahlqvist, Securitas’ CEO and president, said in a statement. “Together, we will be perfectly placed to deliver outstanding expertise and potential for innovation, which will create extraordinary opportunities not only for our shareholders, but for our colleagues and our hundreds of thousands of customers around the world.”
Employing about 60,000 worldwide, Stanley describes itself as “the world’s second-largest commercial electronic security company.”
“Three years ago, we initiated a digital transformation in Security with investments in people, new partnerships and innovative commercial solutions to establish these businesses as leaders with a strong growth trajectory in their respective markets,” Donald Allan Jr., Stanley Black & Decker’s president and chief financial officer, said in a statement. “The team has made incredible progress and the new combination with Securitas will provide them the best platform for the next stage of success.”
Stanley’s security operations complement the “world’s largest tools business,” which includes the Black + Decker, Craftsman, DeWalt and Stanley brands. The company also runs engineered fastening and infrastructure businesses.
The company ranked No. 209 on this year’s Fortune 500 list, with 2020 revenues of about $14.5 billion.
Among other recent transactions, Stanley announced last week that it had completed the acquisitions of two companies in the outdoor power-equipment industry, Excel Industries and MTD Holdings.