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Stanley Black & Decker to snatch up IES Attachments
Posted on Wednesday, 08 August 2018 11:07
Stanley Black & Decker is diversifying its presence in the industrial markets by buying International Equipment Solutions (IES Attachments) from KPS Capital Partners (KPS) for USD 690.00 million.
The target specialises in the manufacturing of heavy equipment attachment tools for off-highway applications under brand names such as Paladin, Genesis and Pengo.
Formed in 2011, IES Attachments has 18 facilities throughout North America and other operations worldwide, employing over 2,800 people.
Paladin produces performance coupler systems, ranging from small compact tool carriers to wheel loaders and truck chassis.
Genesis claims to be a global leader in the designing and manufacturing of shears, grapples and concrete processors, which are used in the scrap processing and demolition industry, among others.
Finally, Pengo specialises in the production of extreme-duty augers and wear parts that serve the agriculture and utility construction market.
In the last 12 months, the target achieved revenue of about USD 400.00 million, 60.0 per cent of which is related to aftermarket applications.
A transaction is subject to customary closing conditions and a receipt of required regulatory approvals.
Under the terms of the acquisition, KPS will retain the cabs division of IES Attachments which includes its brands Crenlo, Emcor and Siac do Brasil (collectively known as IES Cabs).
The purchase will be accretive to the buyer’s earnings per share by around USD 0.25 to USD 0.30 in its third year, excluding charges.
Stanley Black & Decker claims to be the world’s largest and most innovative tools and storage company, specialising in hand and power machines.
It sells over 50 products per second through its many brands, including DeWalt, Craftsman and Facom, among others.
James Loree, chief executive of Stanley Black & Decker, said: “The acquisition of IES Attachments further diversifies our presence in the Industrial markets, creates an additional well-defined path for continued profitable growth and delivers compelling cash flow returns”.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 698 deals targeting other industrial machinery manufacturing providers announced worldwide since the beginning of 2018.
The largest deal took the form of an acquisition of nuclear component manufacturer holding company Westinghouse Electric Company for USD 4.60 billion by Brookfield Business Partners.
© Zephus Ltd