Stanley Sells Hardware, Home Improvement For $1.4 B

by Categorized: Commerce, Manufacturing Date:

Stanley Black & Decker, continuing its move toward global sales and higher-growth businesses, said Tuesday it agreed to sell its Hardware & Home Improvement business to Wisconsin-based  Spectrum Brands Holdings Inc. for $1.4 billion in cash.

The deal includes the historic Stanley residential hardware business, which had a factory in New Britain making hinges, latches and related items until 2001, when the last of that work moved to China. Also included in the deal are such brands as Pfister, Baldwin, Kwikset, Weiser and National.

In all, the business had 2011 sales of $940 million, in residential locksets, residential builder’s hardware and plumbing fixtures.  That was 8.6 percent of total company sales.  Stanley does not break out profits for the business, which is mostly part of its security segment, but the company said HHI, as it’s known, is healthy.

The strategy behind the sale is clear from the company’s intended use of some of the proceeds: to pay for the previously announced $850 million purchase of Hong Kong-based Infastech, a maker of engineered fastening systems, expected to close this year.  That business will combine with Shelton-based Emhart Teknologies to form a global powerhouse in an industrial product line that’s heavy on research and development.

Stanley had said on July 18 that it would sell the HHI business, which has 90 percent of its sales in the United States and is mostly a legacy of the former Black & Decker Corp.  Five days later it announced the acquisition of  Infastech.

Under CEO John F. Lundgren, Stanley has been an aggressive buyer of dozens of companies, not just Black & Decker, which was by far the largest deal.  In July, Stanley said it would take an 18-month break from acquisitions to digest some of its purchases, though it’s hard to imagine Lundgren and COO James Loree passing up a good deal, and the company has a strong balance sheet.

The HHI sale, expected to close in the first quarter of 2013, would not affect per-share earnings, Stanley said, when combined with the Infastech deal and share repurchases.

“The sale of HHI is consistent with our strategy of strengthening our position as a diversified industrial company while maintaining the significant upside potential of a housing market recovery through our $5 billion CDIY portfolio,” Lundgren said, referring to the construction and do-it-yourself segment.

Spectrum is a holding company with many consumer brands, including Rayovac batteries, Remington shavers, Cutter insect repellent, the George Foreman grill and Black & Decker small appliances.

 

 

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15 thoughts on “Stanley Sells Hardware, Home Improvement For $1.4 B

  1. Dean

    which had a factory in New Britain making hinges, latches and related items until 2001, when the last of that work moved to China.

    And that’s exactly what’s wrong in this country!

  2. Dan Haar Post author

    No, not exactly. There are some offshoring moves that have negligible value but it’s hard to blame Stanley for moving work that added very little value here — it was a fairly low-end stamping operation that could be done anywhere. If SWK reinvested the savings in higher value-added work in the United States, we’re all better off.

  3. Bob

    Their products are poorly made and are not worth buying anyway. They have gone down hill during the last two decades. Cheap and throw-away. Hope the company goes broke.

  4. The real Bob

    Whoa, Dan. Let’s not forget the supply chain of steel and brass mills, tool and die makers for the forge, packaging and printing and all the other chemicals and supplies that go into manufacturing that have been off-shored as well. I’ll bet somebody working a forge put their kids though good colleges. Now NB is an empty shell to warehouse section 8 society and Stanley has their board meetings in Bermuda to avoid paying taxes in the country where they did 90% of their business.

    1. Joey

      Bob, you’re absolutely right, it’s Stanley’s fault New Britain is such a dump (insert sarcasm here). …and just as an FYI, they do hold their board meetings in New Britain – just a little fact here for you.

      1. the real deal

        I mean to say…the real deal, you are clueless. why did you even take the time to write a comment that has no merit. The are inc’d in the u.s. you idiot.

  5. Not in CT anymore

    Dean you are right, Real Bob right on target… Dan Harr you need some educationial thoughts.

    I was born and raised in NB… when Stanley Works was in full production, as well as many other factories, NB was in full swing, life was good. As time passed by, factories left, taxes were as Factories taking the main load and shifting it to the residents, look at the tax mil rates now… glad I don’t live in CT now.
    Get with Bart Fisher in NB’s Industrial Museum… I bet you will find some of the answers of why all of America is in this condition, it is not about labor side, it is about profit before the stockholders and that is why you see the jobless rates vs. everything else that is gone haywire here in the USA.

  6. Matty K

    It’s obviously not ALL Stanley’s fault as all the other companies left too, BUT…one of the primary reasons New Britain is the dump that it now is results from companies like Stanley firing thousands of middle class workers to enrich their executives. And YES, they are incorporated in Bermuda, it’s a fact.

  7. Steven Adler

    Stanley Works is a leading global manufacturer growing through M&A partnerships by identifying value and product diversity. American manufacturers don’t send labor overseas because their “anti-American”, but rather pro free markets and capitalism. In some sectors, it’s just too costly to do business in the U.S. Connecticut should thank the Lord, Stanley Works is still in our State.

  8. old capitalist

    You all need to get a clue.

    Corporations exists to make money for their shareholders.
    Economics 101. It is not the corporations fault, but the governments regulations and taxes that cause companies to move to another location. We are in a global economy if you are not the most cost efficent manufacturer you lose business and then you die. Everyone complains about “greedy” corporations moving overseas then they go out and buy Toyotas, Honda’s, Nissan’s and Korean cars. Sony and Samsung Appliances and most anything else. Why?
    Because nobody including you is willing to pay 50% more for the same product. Duh!

  9. Dan Haar

    Stanley Black & Decker is not only incorporated in the United States, it is, in fact, incorporated in Connecticut, unlike many Fortune 500 companies that legally reside in Delaware. Look it up on the first page of the 10K and stop debating this point.
    In March, 2002, former CEO John Trani made a move to incorporate in Bermuda and he and the board later abandoned the effort, under pressure from lots of people, including me.

    http://articles.courant.com/2002-03-22/business/0203220798_1_stanley-works-capital-gains-taxes-corporate-tax-code

  10. Harry Cammeyer

    I retired from National Hdwe. a year after Stanley bought us.As a long time salesman, I stopped to see old customers and they had horror stories as to the service and shipping of their orders. Stanley never had a clue how to run the hdwe. business, not understanding the importance of cust. relationships.After they decimated the towns of Sterling & Rockfalls ,Il., by moving everything out of state they now decide to sell! They don’t care about the little guy, just the almighty dollar!!!

    1. Tea Time

      A high percentage of USA companies they buy they either close or run into the ground:

      ACME GENERAL- closed
      Beach Toolbox Industries-Closed
      Door Divisions- ran into the ground and sold scraps.
      Goldblatt- closed facilities and then sold off.
      Sidchrome- closed plant and moved manufacturing to China
      Precision Hardware- closed plant after buying and moved to BEST.
      National Hardware- Closed plants in Sterling & Rockfalls,Il.

      People that sell their businesses to them hopefully have taken care of all their employees!

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