Stanley Black & Decker buys industrial fastener firm
The tool company will pay $850 million for Infastech, which has four locations in Canada
NEW BRITAIN, Conn.—Stanley Black & Decker an S&P 500 global diversified industrial company, plans to acquire fastening technologies company Infastech, headquartered in Hong Kong, for US$850 million in cash.
Infastech, which has four locations in Canada, is currently owned by CVC Capital Partners and Standard Chartered Private Equity Ltd.
With $500 million in 2011 revenue and more than 2,000 employees, Infastech makes engineered mechanical fasteners for the industrial, electronics, automotive, construction and aerospace sectors.
More than half of Infastech’s 2011 revenues were generated in the Asia-Pacific region. Once combined with Emhart, Stanley Black & Decker’s engineered fastening platform, the enlarged business will generate close to 40 per cent of its revenues from this region.
Total company revenues from emerging markets will increase to approximately 16 per cent.
The combined engineered fastening platform will generate approximately half of its revenues from automotive manufacturing, a third from industrial fastening applications and 20 per cent from high growth verticals such as electronics.
Stanley Black & Decker expects the transaction to save $25 million per year after three years.
The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in the fourth quarter of 2012.
Stanley Black & Decker, an S&P 500 company, makes hand tools, power tools and related accessories, mechanical access solutions and electronic security solutions, engineered fastening systems, infrastructure solutions and more.
Infastech makes engineered mechanical fasteners with revenues exceeding USD$500 million.