Stanley Black & Decker has signed a definitive agreement to sell most its security assets, including its commercial electronic and healthcare security businesses, to Securitas AB for $US3.2 billion in cash.
The businesses carry 2021 forecasted revenues of approximately $1.7 billion and the transaction does not include Stanley Access Technologies.
“The sale of security is consistent with our commitment to generating substantial shareholder value and allows us to sharpen our strategic focus on growing our core businesses while also returning capital to investors through a significant share buyback,” said James M. Loree, Stanley Black & Decker CEO.
“This transaction is a result of our active approach to portfolio management, and the attractive valuation we received reflects the investments we made in transforming our Security business over the last several years. The business is well-positioned for ongoing growth within Securitas, a global leader in the security industry. On behalf of the entire Stanley Black & Decker organization, I want to thank our security team members for their valuable contributions over the years.”
Net proceeds from the sale are expected to be used to fund, in part, an approximately $4 billion share repurchase which is planned to be completed in 2022.
“We are incredibly excited to join forces with Stanley Security and are confident that we will form a winning team,” said Magnus Ahlqvist, Securitas AB president and CEO.
“Together, we will be perfectly placed to deliver outstanding expertise and potential for innovation which will create extraordinary opportunities not only for our shareholders, but for our colleagues and our hundreds of thousands of customers around the world.”
The transaction has been approved by the boards of directors of Stanley Black & Decker and Securitas and should close in the first half of 2022.
#sen.news #SEN #SENnews #security #electronics
