Goran Popovski, the esteemed president of Epiroc’s Tools & Attachments division, remarked, “Our products are like puzzle pieces, and this acquisition is the missing piece that completes our current portfolio, sealing gaps that have existed.”
Black & Decker Sells Tools Unit: A Cash-Fueled Acquisition
Epiroc’s strategy to finance this acquisition is as straightforward as it is bold: an all-cash transaction, underpinned by a short-term loan. The deal’s conclusion, set to occur in the first quarter of 2024, awaits the nod of regulatory bodies.
Global Footprint: From the Great Wall to the Liberty Bell
Infrastructure’s global manufacturing footprint, spanning the U.S., Canada, France, and China, and its workforce of 1,380, primarily U.S.-based, is a testament to its industrial might. With a forecasted revenue generation of $450 million to $470 million for fiscal year 2023, and an EBITDA margin turning heads at mid-to-high teens, the unit is set to leave an indelible mark on the fiscal landscape.
The Aftermath: A Calculated Write-Down
In the wake of this monumental sale, Connecticut’s pride, Stanley Black & Decker, braces for a pre-tax, non-cash charge ranging from $100 million to $150 million due to the write-down of infrastructure assets. This financial maneuver, however, will be a ghost in the company’s adjusted earnings narrative.
Black & Decker Sells Tools Unit: Skadden Arps’ A-Team
The Skadden squad, helming Stanley Black & Decker’s legal chariot, boasts a lineup of M&A gladiator Sean Doyle; compensation wizard Erica Schohn; tech guru Bruce Goldner; antitrust champion David Wales; and tax maestro Alec Jarvis.
