Stanley Black & Decker (SWK) announced that it has entered into a definitive agreement to acquire Infastech, a global manufacturer and distributor of specialty engineered fastening technologies headquartered in Hong Kong, from CVC Capital Partners and Standard Chartered Private Equity Limited for US$850 million in cash.
Infastech has more than 2,000 employees, and generated revenues of about US$500 million. Infastech designs, manufactures and distributes highly-engineered fastening technologies and applications for a diverse blue-chip customer base in the industrial, electronics, automotive, construction and aerospace end markets.
More than half of Infastech's 2011 revenues were generated in the Asia-Pacific region and once combined with Emhart, Stanley Black & Decker's engineered fastening platform, the enlarged business will generate close to 40% of its revenues from this high growth region.
Stanley Black & Decker expects the transaction to result in annual cost savings of approximately US$25 million by year three. The acquisition is also expected to be immediately accretive toStanley Black & Decker'searnings per share, with accretion of US$0.15 per share in the first year following the closing of the transaction and US$0.35 per share in the third year following closing, excluding acquisition-related charges of $25 million - $30 million which will largely be incurred in the first two years.
The transaction, which is subject to customary closing conditions, including regulatory approvals, is expected to close in the fourth quarter of 2012.
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