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October 28, 2021

Stanley Black and Decker to close 2 major acquisitions by early 2022

Photo | Stanley Black & Decker

New Britain-based toolmaker Stanley Black and Decker's profits rose about 5% in 2021's third-quarter, as the company said it plans to complete acquisitions of MTD and Excel Industries by early next year.

During a Thursday morning earnings call, Stanley CEO Jim Loree said Stanley's acquisition of Ohio outdoor lawnmower maker MTD has cleared a key Federal Trade Commission regulatory hurdle, and is on its way to completion. Stanley acquired 20% of Ohio-based MTD for $234 million in 2018, and the deal included an option to acquire the remaining 80%, which the company is exercising.

Meanwhile, the toolmaker's $375 million acquisition of  Excel Industries, a maker of turf equipment, is on track to be completed by early 2022, Loree said.

"We're excited about the future of outdoor products at SBD," Loree said. "[The acquisitions] have the potential for excellent value creation in 2022 and beyond."

Loree said the two transactions plus other upticks in other areas of the company will amount to $6 billion in growth between 2021 and 2022.

Stanley's profits in 2021's third quarter reached $414.1 million — $2.56 per diluted share — a nearly 5% increase from last year's third quarter, when the company posted a $395.2 profit, or $2.44 per diluted share.

Sales in 2021's penultimate quarter amounted to nearly $4.3 billion, almost 11% above sales in 2020's third-quarter, which reached almost $3.9 billion.

Stanley Chief Financial Officer Lee McChesney said the company is facing some headwinds due to inflation, supply chain and transportation issues. As part of an effort to overcome these, Stanley will enact a 5% surcharge on tools and storage products beginning Nov. 8.

"Within a complex environment, we believe that we've sized the productivity and pricing actions to exceed the anticipated 2022 headwinds," McChesney said.

Additionally, Loree said Stanley has hired about 1,300 employees focused on innovation in the past year. These employees were brought on to innovate numerous areas of the company's operations, including engineering, e-commerce and others.

"Extreme innovation is at the heart of SBD's culture, it is one of our three strategic pillars," Loree said. 

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