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Stanley Black & Decker fastens on Infastech

by Lou Whiteman  |  Published July 24, 2012 at 4:15 PM
Stanley_227x128.jpgAcquisitive Stanley Black & Decker Inc. said late Monday it would acquire private equity-backed fastener company Infastech Ltd. for $850 million in cash, a week after telegraphing it could make one more purchase before heading to the sidelines for the next year.

Hong Kong-based Infastech manufactures screws and other fasteners used by tech giants Apple Inc. and Research In Motion Ltd., as well as by industrial, automotive, construction and aerospace companies. More than half of the company's $500 million in annual sales comes from the Asia-Pacific region.

Infastech is being sold by CVC Capital Partners and Standard Chartered Private Equity Ltd., two private equity firms that bought the business in August 2010 from Acument Global Technologies Inc. for an undisclosed sum.

The deal comes just a week after Stanley B&D told analysts it would focus mainly on divestitures and integration after years of dealmaking capped by the 2010 purchase of Black & Decker Corp. by Stanley Works. Company COO James Loree said at the time that Stanley B&D was evaluating the purchase of a fastener franchise, with sources later confirming the company was looking at Infastech.

New Britain, Conn.-based Stanley B&D said that post-deal its existing Emhart fastening platform will generate nearly 40% of sales from the Asia-Pacific, and total company sales from emerging markets will increase to 16%, with a goal of reaching 20% in the coming years.

Company CEO John F. Lundgren in a statement called Infastech "a prefect strategic fit for Stanley Black & Decker" that should give the toolmaker the size and scale it needs to expand in the market.

"It adds to our strong positioning in specialty engineered fastening, an industry which has solid growth prospects particularly in the global electronics, industrial and automotive end markets, and will further expand our global footprint with its strong concentration in fast-growing emerging markets," Lundgren said. "Additionally, we see meaningful opportunities to generate significant cross-selling into new market segments and to implement our Stanley Fulfillment System within Infastech's operations throughout the integration process and beyond."

Stanley B&D expects to extract $25 million in annual cost savings from the deal within three years.

A Skadden, Arps, Slate, Meagher & Flom LLP team including partners John Adebiyi, Sean Doyle, Edward Gonzalez, Bruce Goldner, Stuart Alperin, Ian John and Frederic Depoortere advised Stanley B&D on the deal.
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Tags: Infastech Ltd. | M&A | middle market | PE | Stanley Black & Decker Inc.

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