UPDATE 1-Stanley Black & Decker to buy Infastech for $850 mln
* To buy Infastech from CVC, StanChart Private Equity
* Deal to add 15 cents/share in first year following closing
July 23 (Reuters) - Tool maker Stanley Black & Decker said it agreed to acquire privately held Infastech, a maker of engineered mechanical fasteners, for $850 million in cash to expand its footprint in emerging markets.
Singapore-based Infastech, which is backed by CVC Capital Partners and Standard Chartered's private equity arm, posted revenue of about $500 million in 2011, half of which came from the Asia-Pacific region.
Reuters, quoting sources, reported in May that Stanley Black & Decker is among potential bidders for Infastech.
"It is an excellent complement to our current Emhart Teknologies engineered fastening business and will broaden our product offering, while deepening our IP portfolio and R&D capabilities," President and Chief Executive John Lundgren said in a statement.
The acquisition is expected to add 15 cents per share in the first year following the closing of the transaction and 35 cents in the third year, excluding acquisition-related charges.
The company expects to save $25 million annually by the third year of the transaction, which is expected to close in the fourth quarter of 2012.
Shares of Stanley Black & Decker closed at $64.99 on the New York Stock Exchange on Monday.
- Tweet this
- Share this
- Digg this