Hong Kong fastener firm to be acquired by Stanley Black & Decker in US
New Britain, CT -- Stanley Black & Decker has agreed to acquire Infastech, a manufacturer and distributor of specialty engineered fastening technologies headquartered in Hong Kong, from CVC Capital Partners and Standard Chartered Private...
New Britain, CT — Stanley Black & Decker has agreed to acquire Infastech, a manufacturer and distributor of specialty engineered fastening technologies headquartered in Hong Kong, from CVC Capital Partners and Standard Chartered Private Equity Limited for US$850 million in cash.
With revenues of approximately US$500 million and more than 2,000 employees, Infastech is one of the world’s leading producers of engineered mechanical fasteners and one of the largest Asiabased global players in the specialty mechanical fastener market.
Infastech designs, manufactures and distributes highlyengineered fastening technologies and applications for customers in the industrial, electronics, automotive, construction and aerospace end markets. More than half of Infastech’s 2011 revenues were generated in the Asia-Pacific region and once combined with Emhart, Stanley Black & Decker’s engineered fastening platform, the enlarged business will generate close to 40% of its revenues from this high-growth region.
Total company revenues from the emerging markets will increase to approximately 16%, an important step towards the company’s mid-decade goal of 20%+.
Infastech’s comprehensive product portfolio, including leading brands Avdel, ELCO and iForm, provides innovative, patented and proprietary technologies and customized solutions to customers in more than 150 countries.
The combined engineered fastening platform will generate approximately half of its revenues from automotive manufacturing, a third from industrial fastening applications and 20% from high growth verticals such as electronics. With the acquisition of Infastech, the engineered fastening platform will be the first of the company’s recently identified new growth platforms to achieve its mid-decade goal of $1 billion to $2 billion in revenue.
President and chief executive officer John F. Lundgren commented, “Infastech is both a highly accretive acquisition and a perfect strategic fit for Stanley Black and Decker. It adds to our strong positioning in specialty engineered fastening, an industry which has solid growth prospects, particularly in the global electronics, industrial and automotive end markets, and will further expand our global footprint with its strong concentration in fast-growing emerging markets ….
“It is an excellent complement to our current Emhart Teknologies engineered fastening business ….”
Stanley Black & Decker expects the transaction to result in annual cost savings of approximately US$25 million by year three. The acquisition is also expected to be immediately accretive to Stanley Black & Decker’s earnings per share (EPS), with accretion of US$0.15 per share in the first year following the closing of the transaction and US$0.35 per share in the third year following closing, excluding acquisition-related charges of $25 million to $30 million, which will largely be incurred in the first two years.
The transaction, which is subject to customary closing conditions, including regulatory approvals, is expected to close in the fourth quarter of 2012.