Stanley Black & Decker has agreed to acquire the remaining 80-percent ownership stake in MTD Holdings Inc., the privately held manufacturer of OPE brands including Cub Cadet and Troy-Bilt, for $1.6 billion in cash. Stanley Black & Decker acquired a 20-percent stake in MTD in 2019. The acquisition, subject to regulatory approvals and customary closing conditions, is expected to close in 2021.
“We have worked directly with MTD over the last three years and have been impressed with the quality of the management team, their talented employees and MTD’s relentless dedication to innovation in the outdoor space,” says Stanley Black & Decker CEO James M. Loree. “The combination of businesses will create a global leader in the $25 billion and growing outdoor category, with strong brands and growth opportunities that align with two market trends driving our business – the consumer reconnection with the home and garden and electrification. We have clearly identified multiple levers to drive growth and margin expansion and are looking forward to welcoming MTD’s 7,500 employees to our Stanley Black & Decker family.”
MTD designs, manufactures and distributes lawn tractors, zero-turn mowers, walk-behind mowers, snow blowers, residential robotic mowers, handheld outdoor power equipment and garden tools for residential and professional consumers. The company’s brands include Cub Cadet, Yard Machines, Troy-Bilt, Robomow and others; it has state-of-the-art manufacturing facilities in North America and Europe, and a global distribution network.
“My grandfather founded MTD nearly 90 years ago, and I’m as proud of our history as I am excited about our future with Stanley Black & Decker,” says Robert T. Moll, MTD chairman, CEO and president. “Both companies are proven leaders in our respective industries with iconic brands, world-class capabilities and a passion for bringing new and innovative products to our consumers. I know we are partnering with an organization that will continue to deliver on our purpose of inspiring people to care for and enjoy the outdoors.”
As OPE Business reported two weeks ago, MTD had achieved revenue of approximately $2.5 billion over the last 12 months. In the company’s July 27th earnings call, Loree stated: “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.”
In that earnings call, Loree added: “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.”
STANLEY BLACK & DECKER
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