NEW BRITAIN, Conn., December 8, 2021 / PRNewswire / – Stanley Black & Decker (NYSE: SWK) announced today that it has signed a definitive agreement for the sale of most of its security assets to Securitas AB (STO: SECU B) for $ 3.2 billion in liquid. The proposed transaction includes Stanley Black & Decker’s Commercial Electronic and Healthcare Security (“Security”). Companies achieve expected revenues for 2021 of approximately $ 1.7 billion with a double-digit Adjusted EBITDA margin, implying a purchase price multiple of approximately 16 Adjusted EBITDA.
The net proceeds from the sale are expected to be used to finance, in part, approximately $ 4 billion Share buyback which is expected to be finalized in 2022. The transaction does not include Stanley Access Technologies, which is an industry leader with cutting-edge automatic door solutions.
James M. Lorée, Stanley Black & Decker’s CEO, said: “The sale of Security is in line with our commitment to generate substantial shareholder value and allows us to refine our strategic focus on growing our core businesses while returning capital to investors through the through a major share buyback. This transaction is a result of our active approach to portfolio management, and the attractive valuation we have received reflects the investments we have made in transforming our Security business over the past few years. The company is well positioned for continued growth within Securitas, a global leader in the security industry. In the name of the whole Stanley Black & Decker, I would like to thank the members of our security team for their valuable contributions over the years. “
Magnus Ahlqvist, President and CEO of Securitas AB, said: “We are extremely pleased to partner with Stanley Security and are confident that we will be a winning team. Together, we will be perfectly positioned to deliver exceptional expertise and the potential for innovation that will create opportunities not only for our shareholders, but also for our colleagues and our hundreds of thousands of clients around the world. “
Donald Allan, Jr., Stanley Black & Decker President and Chief Financial Officer commented: “Three years ago, we launched a digital transformation in security with investments in people, new partnerships and innovative business solutions to make these companies leaders with a strong growth trajectory in their respective markets. The team has made incredible progress and the new combination with Securitas will provide them with the best platform for the next step of success. I would like to personally thank my colleagues at Stanley Security for the exceptional amount of energy and passion they put into this transformation to make this phase a success.
“Our use to approach $ 3 billion from net proceeds to a project $ 4 billion The share buyback program that we expect to complete in 2022 is in line with our long-term capital allocation strategy focused on maximizing value. Overall, this operation will allow us to simultaneously strengthen Stanley Black & Decker in the marketplace while delivering significant value to our shareholders. “
The transaction has been approved by the Boards of Directors of Stanley Black & Decker and Securitas and is expected to close in the first half of 2022, but the timing is dependent on obtaining regulatory approvals and other customary closing conditions.
About $ 4 billion share buyback program should start in 2022 with $ 2.0 – $ 2.5 billion is expected to occur in the first quarter and the remainder, which the Company expects to complete in the summer of 2022. The Company’s capital allocation strategy reflects its commitment to substantial return on capital, superior credit ratings and opportunistic and value-creating strategic mergers and acquisitions.
The Company reaffirms its EPS forecast for fiscal 2021 to $ 9.70 – $ 10.05 based on GAAP and $ 10.70 – $ 10.90 on an adjusted non-GAAP basis.
About STANLEY Commercial Electronic Security & Healthcare
STANLEY Commercial Electronic Security is a global provider of integrated security, health and safety solutions and services. Customers all over the world trust STANLEY for its innovative technology; seamless installation and integration; reliable maintenance; 24/7 surveillance; and insightful analyzes. STANLEY is guided by his vision to create safer, healthier and more efficient environments, with the goal of helping the world move forward. Learn more at stanleysecurity.com.
STANLEY Healthcare’s mission is to empower caregivers – all those who make the world more caring. By connecting caregivers to critical information and that of their care networks, STANLEY Healthcare helps organizations deliver connected, productive and safe care. Our solutions are among the most reliable in the industry, trusted by thousands of healthcare organizations around the world. We live our mission through active involvement in our communities and through the defense of health care.
Securitas is a leading partner in smart security solutions. Our guarding, electronic security, fire and security and risk management solutions allow more than 150,000 customers to see another world. We are present in 48 markets and our innovative data-driven approach makes us a trusted partner for many of the world’s best-known companies. Our 355,000 employees live our values of integrity, vigilance and helpfulness, and our goal is to help make your world a safer place.
About Stanley Black & Decker
Based in New Britain, Connecticut, Stanley Black & Decker, an S&P 500 company, is a global, diversified, $ 14.5 billion industry leader with 56,000 employees in more than 60 countries that make the tools. , products and solutions to achieve its goal, for those who Make the world. The Company operates the world’s largest tools business with iconic brands such as DEWALT, STANLEY, BLACK + DECKER and CRAFTSMAN; the second largest commercial electronic security company in the world; and is a global industry leader in advanced solutions within its technical fastening and infrastructure businesses. Learn more at www.stanleyblackanddecker.com
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Caution regarding forward-looking statements
Caution Regarding Forward-Looking Statements Stanley Black & Decker makes forward-looking statements in this press release that represent its expectations or beliefs about future events and financial performance. Forward-looking statements can be identified by words such as “believe”, “anticipate”, “expect”, “intend”, “plan”, “do”, “may” and other similar expressions. . In addition, any statement that refers to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Forward-looking statements contained in this press release include, without limitation, statements regarding: the completion of the securities sale transaction; certain forward-looking guidance on earnings per share and projections of the anticipated impact of the transaction; revenue forecast for 2021 for the Security business; opportunities for future growth; and the Company’s capital allocation strategy and share buyback program, as well as the amount, timing and results in terms of shareholder value.
You are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements do not constitute guarantees of future events and involve risks, uncertainties and other known and unknown factors that may cause actual results and performance to differ materially from future results or performance expressed or implied by these. forward-looking statements, including, but not limited to, the failure or delay in completing the securities sale transaction for various reasons; (including, but not limited to, failure to receive or delay in receipt of required regulatory approvals and compliance with customary closing conditions); failure to initiate or complete, or delay in the timing of the share buyback program; and the inability to realize the expected benefits of the Company’s capital allocation strategy and share buyback program.
The forward-looking statements contained in this document are also subject to risks and uncertainties, described in: Stanley Black & Decker’s 2020 annual report on Form 10-K, its quarterly reports subsequently filed on Form 10-Q; and other files Stanley Black & Decker done with the Securities and Exchange Commission. In addition, actual results could differ materially from those suggested by forward-looking statements and, therefore, you should not place undue reliance on forward-looking statements. Stanley Black & Decker does not undertake to revise or update any forward-looking statements to reflect events or circumstances occurring or existing after the date of any forward-looking statement.
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