Update: In December 2021, Stanley Black & Decker announced that it had successfully completed the acquisition of two leading companies in the OPE industry, including purchasing the remaining 80 percent ownership stake in MTD Holdings Inc. and the acquisition of Excel Industries. Read the updated news here.
Stanley Black & Decker is negotiating to acquire MTD Products, Inc., whose brands include Cub Cadet, Yard Machines, Troy-Bilt, Robomow and others. Stanley Black & Decker acquired a 20-percent stake in MTD in 2018, with the option to acquire the remaining 80 percent of MTD beginning July 1, 2021.
In the company’s July 27th earnings call, Stanley Black & Decker CEO James Loree stated:
“Our option to acquire the remaining 80% of MTD opened up at the beginning of this month. This opportunity is exciting as we bring leading brands and capabilities in the electric outdoor category as well as the ability to deploy the SBD operating model and apply our global scale. MTD brings superb product engineering and manufacturing expertise in outdoor power equipment, capabilities in robotics technology as well as access to the independent dealer channel in outdoor.
“We were just at MTD’s facilities in Valley City, Ohio, last week and came away even more energized by the pipeline for innovation and the runway for growth in 2022 and beyond,” he continued. “The strategic fit is hand in glove and the revenue and cost synergy opportunities are compelling. We are currently in negotiations with MTD on the option execution. And should they come to a successful conclusion and subject to all regulatory approvals, we will begin work on tackling this multiyear opportunity for growth and margin expansion upon closing.”
Over the last 12 months ending June 30, stated Donald Allan, Jr., Stanley’s president and CFO, “MTD achieved revenue of approximately $2.5 billion. MTD has worked tirelessly to meet the supply-chain challenges brought about by the pandemic, including limited throughput on larger products as well as component and input shortages. However, this has muted their output in revenue over the last 12 months. We believe these are temporary and manageable disruptions that can improve with our application of the SBD operating model.”
Stanley Black & Decker’s current brands include: Stanley, Black + Decker, DeWalt, Craftsman, Mac Tools, Bostitch, Porter Cable, Lenox and others.
STANLEY BLACK & DECKER
Subscribe to OPExtra, our free weekly e-newsletter for outdoor power equipment dealers and distributors. Subscribe to OPExtra!