Stanley Black & Decker offloads Access Technologies business to Allegion for $900M

Apr. 22, 2022 6:54 AM ETStanley Black & Decker, Inc. (SWK), ALLEBy: Niloofer Shaikh, SA News Editor5 Comments
  • Stanley Black & Decker (NYSE:SWK) to sell its automatic doors business, Access Technologies, to Allegion plc (NYSE:ALLE) for $900M in cash.
  • The Access Technologies business generated approximately $340M in revenue in FY2021 at a mid-teen adjusted EBITDA margin.
  • James M. Loree, Stanley Black & Decker's CEO, stated, "The sale of Access Technologies at an attractive valuation demonstrates our commitment to maximizing value for our shareholders through active portfolio management and will help fund our substantial return of capital. With a more focused portfolio – comprised of our Tools & Outdoor and Industrial segments – Stanley Black & Decker is positioned to capitalize on compelling opportunities for multi-year growth, margin expansion and long-term value creation for shareholders.
  • Net proceeds from the sale are expected to be used to fund company's previously announced share repurchase program as well as debt reduction.
  • The transaction iss expected to close in the third quarter of 2022.
  • The company will record Access Technologies as discontinued operations in Q1 results on April 28, 2022.
  • Allegion (ALLE) expects to report Q1 results on April 26, 2022, projecting revenue of approximately $723M vs. consensus of $690.07M and earnings per share of approximately $1.05 vs. consensus of $0.96.

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