Stanley Works also announces sale of CST/Berger for $205 million and plans to prune several small, non-strategic product lines during the remainder of 2008
The Stanley Works (NYSE: SWK) this evening announced announced that it has entered into an agreement to purchase 100 percent of the shares of Sonitrol Corp. from an ownership group comprised of Carlyle Venture Partners, Wachovia Capital Partners and Spire Capital Partners as well as selected members of Sonitrol management for $275 million cash (approximately 10x EBITDA).
Sonitrol, headquartered in Berwyn, Pa., provides security monitoring services, access control and fire detection systems to commercial customers in North America via two monitoring centers and a national multi-channel distribution network.
Sonitrol, ranked No. 8 on the 2008 SDM 100 report of the largest security dealers in the United States, brings a strong brand, unparalleled capabilities in audio-verified monitoring and a substantial national account base to Stanley’s Convergent Security Solutions platform. Sonitrol, with revenue totaling approximately $110 million will report into Stanley’s Convergent Security Solutions business which had 2007 revenues approaching $600 million. Sonitrol reported to SDM it had $5.7 million in monthly recurring revenue at Dec. 31, 2007.
The boards of directors of Stanley and Sonitrol have approved the transaction, which is subject to regulatory approvals and other customary conditions. The acquisition is expected to close during the third quarter of 2008.
In a separate transaction, the company also announced that it entered into an agreement to sell its CST/berger laser leveling and measuring business, based in West Lafayette, Ind., to Robert Bosch Tool Corp. for $205 million.
John F. Lundgren, chairman and chief executive officer, commented: “These two transactions are important steps toward advancing our growth strategy and repositioning the company to be less dependent on construction and DIY markets. We continue to be strongly committed to shifting the company’s portfolio into higher-growth, higher-return areas such as electronic security. The addition of Sonitrol, with its iconic brand and strong franchisee and direct sales network, expands the scale of our existing North American monitoring operation, increases our recurring revenue and adds breadth and depth to our electronic security product offering.”
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