Benzinga | Aug 17, 2021 09:36AM EDT

Stanley Black & Decker To Acquire Remaining 80% Stake In MTD Holdings For $1.6B

* Stanley Black & Decker, Inc. (NYSE:SWK) to acquire the remaining 80% ownership stake in MTD Holdings Inc., a privately held global manufacturer of outdoor power equipment, including Cub Cadet and Troy-Bilt, for $1.6 billion in cash. The company had acquired a 20% stake in MTD in 2019.

* MTD recorded over $2.5 billion in revenues in the last twelve months.

* Stanley Black & Decker expects the transaction to result in cumulative annual cost synergies of ~$100 million by 2025, assumes 2022 revenue of ~$2.6 billion, and consolidated adjusted EBITDA over $230 million.

* The acquisition is expected to be ~$0.50 accretive to adjusted EPS in 2022, increasing to over $1.00 by 2025.

* The total purchase price represents an adjusted LTM EBITDA multiple of ~8x.

* Stanley Black & Decker plans to close the acquisition in 2021 and fund it with a combination of cash on hand and proceeds from debt incurrence.

* It held cash and cash equivalents of $440.4 million as of July 3, 3021.

* Price Action: SWK shares traded lower by 1.30% at $197.88 on the last check Tuesday.