Stanley Black & Decker has agreed to sell its Consolidated Aerospace Manufacturing for $1.8 billion in cash, according to the Connecticut-based company.
Chris Nelson, Stanley Black & Decker’s president & CEO, said, “Divesting CAM reflects our ongoing dedication to enhancing shareholder value and focusing on growing our biggest brands and businesses.
“The proceeds from this transaction are expected to significantly reduce our debt, positioning us to achieve our target leverage ratio of 2.5 times net debt to adjusted EBITDA,” Nelson said, in a statement. “After achieving this critical financial goal, we will have greater flexibility to pursue additional value-creation opportunities through a more agile capital allocation strategy. I am confident that CAM, along with its talented team, will thrive as part of Howmet Aerospace.
“I would also like to express my appreciation to all CAM employees for their exceptional dedication and remarkable contributions, which have been instrumental to CAM’s success.”
An email seeking comment was sent to Stanley Black & Decker. A request for comments also was sent to Howmet.
Stanley Works was founded in New Britain by Frederick T. Stanley in 1852, according to the company.
Stanley Black & Decker (File photo)
The Stanley Works’ shareholders in 2010 overwhelmingly approved a merger with Black and Decker. In a 10-minute meeting at Stanley headquarters in New Britain, about 80 people listened to John F. Lundgren, then Stanley chairman and chief executive, explain that the board unanimously recommended the creation of tools juggernaut Stanley Black & Decker, according to previous Courant reporting. The story noted then that the companies had $8.5 billion in sales in 2009. Black & Decker’s sales outpaced Stanley’s by about $1 billion, but Stanley was able to buy its former rival because its stock market value was higher — the result of Stanley’s growing security segment.
Now, Stanley Black & Decker said it has a “definitive agreement” to sell the Consolidated Aerospace Manufacturing business to Howmet Aerospace for $1.8 billion in cash. CAM provides fasteners, fittings, and other engineered components for the aerospace and defense industries, according to Stanley Black & Decker.
“CAM is expected to generate FY 2025 revenue of approximately $405 to $415 million, with an adjusted EBITDA margin percentage approaching the high-teens. Stanley Black & Decker expects to utilize the net cash proceeds of the transaction to reduce debt,” according to Stanley Black & Decker.
The company did not say whether the sale will impact workers.
The company noted, that, “until the transaction closes, the results of CAM will remain in continuing operations and will not be reclassified as discontinued operations. The transaction is expected to close in the first half of 2026 and is subject to regulatory approval and other customary closing conditions.”
Stanley Black & Decker Inc. (Getty Images)
“The acquisition of CAM is a major step in our strategy to build out our differentiated fastener portfolio,” said John C. Plant, executive chairman and CEO of Howmet Aerospace, also in a statement. “CAM’s established brands, engineering prowess, and deep customer relationships are a perfect complement to our existing business. This transaction will allow us to better serve our aerospace and defense customers with a broader offering of mission-critical fastening solutions and represents a compelling use of capital to drive value for our shareholders.”
Pittsburgh-based Howmet Aerospace Inc. said its primary businesses focus is on “jet engine components, aerospace fastening systems, and airframe structural components necessary for mission-critical performance and efficiency in aerospace and defense applications, as well as forged aluminum wheels for commercial transportation.”
Stanley Black & Decker said it has about 48,000 employees; the company produces power tools, hand tools, storage, digital jobsite solutions, outdoor and lifestyle products, and engineered fasteners.
Stanley Black & Decker’s business accelerator in downtown Hartford, pictured in 2018. (Courant file photo)
The company noted the “forward-looking statements” it made represent “its expectations or beliefs about future events and financial performance,” and that includes on “consummation of the CAM sale transaction.”