Stanley Black & Decker Streamlines Portfolio With $760M Infrastructure Sale To Epiroc, Targets Debt Reduction

Stanley Black & Decker SWK has agreed to divest its STANLEY Infrastructure division, which specializes in attachment and handheld hydraulic tools, to Epiroc AB EPOKY EPIAF for $760 million in cash.

The Infrastructure division is projected to yield revenues in the range of $450 million to $470 million in FY23, with an anticipated EBITDA margin hovering between the mid to high teens; the divestiture of the Infrastructure division is perceived as a strategic advancement for Stanley Black & Decker.

The company plans to use the net proceeds from this transaction, after minimal taxes, to reduce its debt burden.

Stanley Black & Decker anticipates a pre-tax, non-cash charge ranging from $100 million to $150 million. This charge, stemming from the write-down of Infrastructure's net assets, will be excluded from the company's adjusted earnings. 

Price Action: SWK shares traded down 0.76% at $100.72 on the last check Friday.

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