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- Stanley Black & Decker Inc. sold its portable hydraulic attachments and tools unit to Sweden's Epiroc AB for $760 million.
- The deal is part of part of Stanley's efforts to streamline its operations.
- The company said it would use money from the sale to pay down debts.
Stanley Black & Decker Inc. (SWK) announced Friday that it is selling its portable hydraulic tool and accessory businesses to Swedish mining equipment maker Epiroc AB as part of its efforts to focus more about its main activity.
The manufacturer of Tools said Epiroc would pay $760 million in cash for the unit, known as Stanley Infrastructure, and would use the money to reduce its debt.
CEO Donald Allan Jr. said the move “demonstrates our commitment to maximizing shareholder value through active portfolio management.” He added that “simplification” is a critical part of Stanley's strategic transformation, “and this transaction will help us sharpen our focus on value creation opportunities across our core businesses while supporting our allocation priorities.” of capital”.
The company has not provided a timetable for the expected conclusion of the agreement. He noted that the division will remain active and will not be classified as discontinued operations until the sale is completed. Stanley said the sale would result in a pre-tax non-cash charge of approximately $100 million to $150 million related to asset impairment.
Stanley Black & Decker was down 2.78% Friday afternoon at $98.67, but they have gained a third of their value this year.
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Source: investopedia.com
