NEW BRITAIN - Stanley Black & Decker announced on Tuesday that it has entered an agreement to acquire International Equipment Solutions Attachments Group for $690 million.
With the acquisition, Stanley Black & Decker will operate a variety of attachment solutions and an important platform for development.
The acquisition will be accretive, meaning it will increase earnings per share - by 25 to 30 cents by the third year, not including charges.
The acquisition does not include IES’s cab business, which sold products under the Crenlo and other brand names.
“The acquisition of IES Attachments further diversifies our presence in the industrial markets, creates an additional well-defined path for continued profitable growth and delivers compelling cash flow returns,” Stanley Black & Decker’s president and CEO, James M. Loree, said.
IES Attachments is a manufacturer of high-quality, heavy equipment attachment tools for off-highway applications.
The company markets its products under brands including Paladin, Genesis and Pengo.
After-market applications account for 60 percent of the $400 million in the last 12 months revenue.
Share repurchases at Stanley Black & Decker happen generally when the business believes that the stock price is competitive relatively to the long-term value of the company, and it is a way of returning value to the shareholders.
The New Britain-head-quartered company is a provider of electronic security solutions, hand tools, engineered fastening systems, health care solutions, power tools and related accessories and more.
To learn more about Stanley Black & Decker, visit its website at stanleyblackanddecker.com.
Karla Santos can be reached at 860-801-5079.