Stanley Black & Decker Completes Sale of Hardware & Home Improvement Group to Spectrum Brands Holdings
Stanley Black & Decker (NYSE: SWK), an S&P 500 global diversified industrial company, announced today that it has completed the previously announced sale of its Hardware & Home Improvement Group (“HHI”) to Spectrum Brands Holdings, Inc. (NYSE: SPB) (“Spectrum Brands”) for $1.4 billion in cash.
As previously disclosed, this tax-efficient transaction is expected to generate after-tax cash proceeds of $1.3 billion. Over fifty percent of the proceeds will be used to repurchase shares and a smaller portion will go towards modest debt reduction. The company will reinvest the remaining proceeds, together with existing offshore capital, to fund the previously announced Infastech acquisition, which is expected to close in the next 45 days. Also as previously communicated, the company expects modest earnings per share (“EPS”) dilution of $0.10 - $0.20 in 2013 which represents the net result of the sale of HHI partially offset by the favorable impact of the share repurchases and accretion from Infastech. Stanley Black & Decker plans to disclose exact details of the estimated financial effects of these transactions on 2013 results when it announces its fourth quarter and full-year 2012 results and provides 2013 guidance in late January.
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