Stanley Black & Decker announced it has signed a definitive agreement for the sale of most of its security assets to Securitas AB for $3.2 billion in cash. The proposed transaction includes Stanley Black & Decker’s commercial electronic and healthcare security business lines. The businesses carry 2021 forecasted revenues of approximately $1.7 billion with an adjusted EBITDA margin in the low double-digits, implying a purchase price multiple of approximately 16 trailing adjusted EBITDA.
“The sale of security is consistent with our commitment to generating substantial shareholder value and allows us to sharpen our strategic focus on growing our core businesses while also returning capital to investors through a significant share buyback,” said James M. Loree, Stanley Black & Decker CEO. “This transaction is a result of our active approach to portfolio management, and the attractive valuation we received reflects the investments we made in transforming our Security business over the last several years. The business is well positioned for ongoing growth within Securitas, a global leader in the security industry. On behalf of the entire Stanley Black & Decker organization, I want to thank our security team members for their valuable contributions over the years.”