Stanley Black & Decker announced it has signed a definitive agreement for the sale of most of its Security assets to Securitas AB for $3.2 billion. The proposed transaction includes Stanley Black & Decker’s Commercial Electronic and Healthcare Security business lines (Security).
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. The transaction does not include Stanley Access Technologies, which is a leader in the industry with state-of-the-art automatic door solutions.
James M. Loree, Stanley Black & Decker’s CEO, stated, “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. 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.”
Magnus Ahlqvist, Securitas AB President & CEO, said, “We are incredibly excited to join forces with Stanley Security and are confident that we will form a winning team. 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.”
Donald Allan, Jr., Stanley Black & Decker’s President & Chief Financial Officer commented, “Three years ago we initiated a digital transformation in Security with investments in people, new partnerships and innovative commercial solutions to establish these businesses as leaders with a strong growth trajectory in their respective markets. The team has made incredible progress and the new combination with Securitas will provide them the best platform for the next stage of success. I want to personally thank my colleagues from Stanley Security on the outstanding amount of energy and passion they put into this transformation to make this phase a success.”
“Our use of approaching $3 billion of net proceeds towards a planned $4 billion share repurchase program that we expect to complete in 2022 is consistent with our long-term capital allocation strategy focused on value maximization. Overall, this transaction will allow us to simultaneously strengthen Stanley Black & Decker’s core market position while returning significant value to our shareholders.”
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