Stanley Black & Decker announced it has completed the sale of its Consolidated Aerospace Manufacturing (CAM) business to Howmet Aerospace for approximately $1.8 billion in cash, finalizing a previously announced transaction aimed at sharpening its strategic focus and strengthening its balance sheet.
The company expects to use approximately $1.57 billion in net proceeds, after taxes and fees, to reduce debt. This move is designed to improve financial flexibility and support a more dynamic capital allocation strategy focused on long-term shareholder value creation.
The divestiture allows Stanley Black & Decker to further concentrate on its core operations while positioning the company to achieve a target leverage ratio of around 2.5 times net debt to adjusted EBITDA by year-end. The company emphasized that the transaction aligns with its disciplined approach to capital allocation and ongoing efforts to streamline its portfolio.
Stanley Black & Decker also acknowledged the contributions of the CAM team and expressed confidence in the business’s future under Howmet Aerospace’s ownership as it transitions into its next phase of growth within the aerospace and defense sector.
KEY QUOTE:
“The successful sale of CAM further focuses our portfolio on our core businesses. The proceeds from this transaction are expected to significantly reduce our debt, positioning us to achieve our target leverage ratio of at or around 2.5 times net debt to adjusted EBITDA by year end, and enabling additional capital allocation opportunities. We remain committed to disciplined capital allocation and accelerating value creation for our shareholders. We would also like to recognize the CAM team for their dedication and outstanding contributions, which have been instrumental to our business success. As they now embark on their next chapter with Howmet Aerospace, we are confident they will continue to set new standards of excellence and continue to drive meaningful impact.”
Chris Nelson, President And Chief Executive Officer, Stanley Black & Decke
