Stanley Black & Decker to sell attachment tools business for $760M in cash

Stanley Black & Decker announced it has entered into a definitive agreement to sell Stanley Infrastructure, the company’s attachment and handheld hydraulic tools business, to Epiroc AB for $760M in cash. Infrastructure is expected to generate approximately $450 to $470 million in revenue with a mid-to-high teens adjusted EBITDA margin in FY2023. Stanley Black & Decker expects to utilize the cash proceeds of the transaction, net of modest taxes, to reduce debt. Stanley Black & Decker expects to incur a pre-tax, non-cash charge of approximately $100M-$150M related to the write-down of the Infrastructure net assets, which will be excluded from adjusted earnings. Until the transaction closes, the results of Infrastructure will remain in continuing operations and will not be reclassified as discontinued operations. The completion of the Infrastructure transaction is subject to regulatory approval and other customary closing conditions.