Posted July 25, 2022

Stanley Black & Decker completes sale of Security business

Stanley Black & Decker has completed the sale of most of its Security assets to Securitas AB for $3.2 billion in cash.

The sale includes Stanley Black & Decker's Commercial Electronic and Healthcare Security business lines. Net proceeds from the sale are expected to fund debt reduction and the $2.3 billion share repurchase completed in the first quarter. This transaction was announced on Dec. 8, 2021.

"The completed sale of our Security business is another major milestone in creating a more focused Stanley Black & Decker, leveraging our leadership position in Tools and Outdoor, as well as our highly engineered Industrial business," said Donald Allan Jr., Stanley Black & Decker's president and CEO.

Security generated approximately $1.6 billion in revenue in 2021 with adjusted EBITDA margin in the low double-digits, implying a purchase price of approximately 16 times trailing adjusted EBITDA, which reflects the successful transformation of the business over the last several years.