STANLEY Black & Decker has entered into an agreement to sell the majority of its mechanical security businesses, including commercial hardware brands BEST Access, phi Precision and GMT to access and security solution provider dormakaba for $US725 million in cash.
"After an extensive evaluation of our sdecurity business, we are sharpening our focus on areas within our portfolio which are strategically attractive,” Stanley Black and Decker president and CEO James M. Loree said in a prepared statement. “While BEST Access, phi Precision and GMT are healthy and profitable businesses, they are a better fit in dormakaba's portfolio and their divestiture will allow us to deploy capital in a more accretive and growth-oriented manner.”
BEST Access, phi Precision and GMT, together represented LTM revenues and EBITDA of approximately $270 million and $52 million, respectively. The transaction is expected to close in the first quarter of 2017, subject to customary closing conditions including required regulatory approvals.
dormakaba also recently acquired Mesker Openings Group, a U.S.-based commercial door and hardware company, for $142.5 million. That deal was finalized on Dec. 13.
Riet Cadonau, CEO of dormakaba, said in a prepared statement, “This transaction builds on the dormakaba merger, which boosted our global market position, and the recently completed Mesker acquisition, which will expand our North America offering to cover all essential door components including manual doors. Now with this unique strategic opportunity to acquire Stanley Commercial Hardware, we will add substantial scale, becoming a top-three provider in the attractive North American market that can offer the full portfolio of door hardware and access control solutions to our customers.”
Not included in the sale with Stanley Black & Decker was its Sargent and Greenleaf brand (LTM revenues of approximately $50 million), the remaining part of Stanley’s Mechanical Security businesses.
Stanley Black & Decker also announced that it intends to retain for the long-term its commercial electronic security (LTM revenues of approximately $1.5 billion) and automatic doors (LTM revenues of approximately $0.3 billion) businesses. ♦