Stanley Black & Decker to buy remaining 80% of MTD in $1.6B deal
Photo | HBJ File
Stanley Black & Decker CEO James Loree.
New Britain-based tools and hardware manufacturer Stanley Black & Decker announced Tuesday that it has reached a $1.6 billion deal to complete its acquisition of lawnmower maker MTD Products.
Stanley Black & Decker said it will pay cash to take control of the remaining 80% stake in Ohio-based MTD, an option given to the company after it acquired an initial 20% stake for $234 million in 2019.
The buyout will add approximately 7,500 MTD employees to Stanley’s headcount.
“We have worked directly with MTD over the last 3 years and have been impressed with the quality of the management team, their talented employees and MTD’s relentless dedication to innovation in the outdoor space,” said Stanley CEO James M. Loree. “The combination of businesses will create a global leader in the $25 billion and growing outdoor category, with strong brands and growth opportunities that align with two market trends driving our business — the consumer reconnection with the home and garden and electrification.”
Loree had signalled plans to move forward with an expanded MTD deal during an earnings call in January. At the time, the company was in the thick of a pandemic-inspired home improvement boom that drove up demand for household tools, a trend that has continued well into 2021.
Stanley officials said the acquisition is on track to close this year and will be financed with a combination of cash on hand and proceeds from debt incurrence.
The linkup is expected to result in cumulative annual cost synergies of about $100 million by 2025, they added.
MTD, which has its corporate headquarters in Valley City, Ohio, designs, manufactures and distributes lawn tractors, mowers, snowblowers, handheld power equipment and garden tools under brands such as Cub Cadet and Troy-Bilt. The company reported over $2.5 billion in revenues over the last year.
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