Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
Final hours: unlock premium data with Claim 60% OFF
Stanley Black & Decker working with Goldman on sale of locks unit: sources
Published Oct 13, 2016 02:29PM ET
Updated Oct 13, 2016 02:40PM ET
© Reuters. A sign is displayed in the reception of Goldman Sachs in Sydney
By Greg Roumeliotis and Lauren Hirsch
(Reuters) - Power tool maker Stanley Black & Decker Inc (N:SWK) is working with investment bank Goldman Sachs Group Inc (N:GS) on a sale process for its mechanical locks business, which could fetch as much as $1 billion, according to people familiar with the matter.
The sale process comes as the New Britain, Connecticut-based company has reignited its deal-making engine, breaking a two-year acquisition lull with a $1.95 billion agreement this week to acquire Newell Brands Inc's (N:NWL) tool business.
The divestiture process for the unit, which sells and installs locking mechanisms and keying systems, would allow Stanley to raise cash by divesting what it sees as a non-core asset.
That business has not performed as well as competitors with more scale, such as Allegion Plc (N:ALLE) and Assa Abloy AB (ST:ASSAb), and Stanley has been more focused on growing its electronic security systems.
The locks business has 12-month earnings before interest, taxes, depreciation and amortization of around $70 million, the people said this week.
Stanley and Goldman Sachs declined to comment. Asked by an analyst on a conference call on Wednesday about the company's review of its security business, Stanley Chief Executive Jim Lore would only say that "it will play out in the coming months, and that could be another source of funds if it goes in that direction."
The tools acquisition that Stanley announced this week is its biggest deal since it was created through the $4 billion all-stock merger of Stanley Works and Black & Decker Corp in 2010. The company had said in 2013 it was pausing deal-making for two years, as it sought to pay down debt and improve operations.
In its first-quarter earnings call, Stanley said it would continue to consolidate its global tools and storage business, and was optimistic about international opportunities for its industrial fastening business.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.