August 7, 2018

For $690M, Stanley adding heavy-tool add-ons

PHOTO | Robert Benson Photography
PHOTO | Robert Benson Photography
Stanley Black & Decker's New Britain headquarters.

New Britain hand- and power-tool maker Stanley Black & Decker says it will pay $690 million cash for the heavy-tool attachments portfolio of an Illinois tool vendor.

Separately, Stanley announced the July completion of the buyback of $300 million more of its common stock, bringing its year-to-date repurchase total to $500 million.

New York equity investor KPS Capital Partners, owner of International Equipment Solutions LLC, of suburban Chicago, agreed definitively to sell its IES Attachments Group to Stanley in a deal expected to close before year-end, if regulators OK the deal, the company said Tuesday.

Stanley President and CEO James M. Loree said IES Attachments' Paladin, Pengo and Genesis brands generate about $400 million in annual revenue, of which nearly two-thirds comes from after-market sales of heavy-tool attachments, likes drilling augers, used in off-highway construction.

Loree said the IES portfolio will be absorbed into Stanley's hydraulic-tools business within its industrial segment. Stanley will fund the deal with cash on hand and bank borrowings, he said.

KPS created IES in 2011 as a holding company when it acquired the attachments-brand trio, along with the Emcor and Crenlo tool brands. The Stanley deal excludes IES's cabs business sold under the Crenlo and other brand names, officials said.

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