Stanley Black & Decker to buy remaining stake in MTD Holdings for $1.6 billion in cash

Stanley Black & Decker Inc. announced Tuesday an agreement to pay $1.6 billion in cash to buy the 80% stake in outdoor power equipment maker MTD Holdings Inc. that it doesn't already own. MTD has recorded revenue of $2.5 billion in the last 12 months. Stanley expects the deal to result in annual cost synergies of about $100 million by 2025, and is expected to add 50 cents to adjusted earnings per share in 2022 and to add more than $1.00 to EPS by 2025. The company expects one-time charges of $175 million to $200 million as a result of the deal, which is expected to close in 2021. "The combination of businesses will create a global leader in the $25 billion and growing outdoor category, with strong brands and growth opportunities that align with two market trends driving our business -- the consumer reconnection with the home and garden and electrification," said Stanley Chief Executive James Loree. Stanley's stock, which was still inactive in premarket trading, has lost 6.7% over the past three months while the S&P 500 has gained 7.6%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Stanley Black & Decker to buy remaining stake in MTD Holdings for $1.6 billion in cash
Stanley Black & Decker Inc. announced Tuesday an agreement to pay $1.6 billion in cash to buy the 80% stake in outdoor power equipment maker MTD Holdings Inc. that it doesn't already own. MTD has recorded revenue of $2.5 billion in the last 12 months. Stanley expects the deal to result in annual cost synergies of about $100 million by 2025, and is expected to add 50 cents to adjusted earnings per share in 2022 and to add more than $1.00 to EPS by 2025. The company expects one-time charges of $175 million to $200 million as a result of the deal, which is expected to close in 2021. "The combination of businesses will create a global leader in the $25 billion and growing outdoor category, with strong brands and growth opportunities that align with two market trends driving our business -- the consumer reconnection with the home and garden and electrification," said Stanley Chief Executive James Loree. Stanley's stock, which was still inactive in premarket trading, has lost 6.7% over the past three months while the S&P 500 has gained 7.6%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.