Stanley Black & Decker (NYSE: SWK) today announced that it has entered into a definitive agreement to acquire Excel Industries for $375 million in cash.
Excel Industries is a leading designer and manufacturer of premium commercial and residential turf-care equipment under the distinct brands of Hustler Turf Equipment (Hustler) and BigDog Mower Co. (BigDog). With over $375 million of revenue forecasted in 2021, Excel serves approximately 1,400 active independent equipment dealer outlets that stock, sell and service Hustler and BigDog products in the United States and Canada. Excel has a strong legacy of innovation and launched the first hydrostatic zero-turn mower in 1964. The Company is located in Hesston, Kansas, and has approximately 600 employees.
Stanley Black & Decker's CEO James M. Loree commented, "This is a strategically important bolt-on acquisition as we build an outdoor products leader. Excel brings a range of premier, commercial grade and prosumer turf-care equipment, an extensive dealer network, a talented team and a loyal customer base."
The acquisition will be modestly accretive to Stanley Black & Decker's EPS in year one, and accretive to EPS by approximately $0.15 - $0.20 by year three, excluding charges. The transaction, which has been approved by a majority of Excel's shareholders, is subject to purchase price adjustment provisions and customary closing conditions, including receipt of required regulatory approvals. The transaction will be funded with cash on hand and proceeds from borrowings.
Stanley Black & Decker, an S&P 500 company, is a leading $14.5 billion global diversified industrial with 56,000 employees in more than 60 countries who make the tools, products and solutions to deliver on its Purpose, For Those Who Make The World. The Company operates the world's largest tools and storage business; the world's second largest commercial electronic security company; and is a global industrial leader of highly engineered solutions within its engineered fastening and infrastructure businesses. Learn more at www.stanleyblackanddecker.com.