Stanley Black & Decker to Buy Rest of MTD for $1.6 Billion
(Bloomberg) -- Stanley Black & Decker Inc. agreed to buy the remaining 80% of MTD Holdings Inc., the family-led maker of Cub Cadet and Troy-Bilt lawn tractors and power tools.
The cash transaction will complete a relation that began when New Britain, Connecticut-based toolmaker Stanley bought 20% of MTD in 2019, the companies said in a statement Tuesday. The purchase is expected to close this year pending regulatory approvals.
Stanley said it decided to buy the rest of the company because of its strong brands and trends among consumers to focus more on lawn and garden care, and a push toward electrification in tools. MTD is run by Chief Executive Officer Robert Moll, whose grandfather founded the company 90 years ago. Valley City, Ohio-based MTD, with some 7,500 employees, had $2.5 billion in revenue over the past 12 months.
The combination is expected to add 50 cents a share to adjusted earnings next year and more than $1 a share by 2025, the same year that annual cost savings should reach about $100 million, Stanley said in the statement. Stanley said it operates the world’s largest tools and storage business.
Stanley shares were little changed at $200 before the open of regular trading and rose 12% this year through Monday’s close.
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