Stanley Black & Decker, Inc. · NYSE:SWK
Stanley Black & Decker — Merger or Acquisition (January 2017)
10 slides from Stanley Black & Decker's merger presentation, Jan 5, 2017
Slide 1: Purchase Of Craftsman Brand
Purchase Of Craftsman Brand January 5, 2017
Slide 2: Cautionary Statements
2 Cautionary Statements Stanley Black & Decker makes forward-looking statements in this presentation which represent its expectations or beliefs about future events and financial performance. Forward-looking statements are identifiable by words such as "believe," "anticipate," "expect," "intend," "p
Slide 3: An Investment In Organic Growth
3 An Investment In Organic Growth Stanley Black & Decker To Purchase Craftsman Brand From Sears Holdings… …Enhances Company’s Rich Brand Portfolio With Addition Of Iconic Craftsman Brand • Obtaining Rights To Develop, Manufacture And Sell Craftsman Brand In Non-Sears Retail, Industrial & Online Chan
Slide 4: Commercial Expansion & U.S. Manufacturing Base
Commercial Expansion & U.S. Manufacturing Base 11 U.S. Tools & Storage Manufacturing Facilities Allentown, PA | Charlotte, NC | Cheraw, SC | Dallas, TX | Georgetown, OH | Greenfield, IN | Hampstead, MD | Holliston, MA | Jackson, TN | New Britain, CT | Shelbyville, KY Accelerating Innovation, Channel
Slide 5: The Craftsman Brand Today: Overview
Existing Sales NetworkBrand Overview • Iconic Brand Within U.S. In Power & Hand Tools And Storage Products • High Brand Awareness • Strong Presence In Lawn & Garden • External Sears Sales – Predominantly Through Ace Hardware • Diverse & Complementary Product Lines The Craftsman Brand Today: Overview
Slide 6: Craftsman Today: ~$1.9B At Retail
Tractors & Mowers L&G Equipment ~25% Of Retail ~15% Of Retail Craftsman Today: ~$1.9B At Retail 6 Tools (~35%) Lawn & Garden (~40%) Storage / Other (~25%) Hand Tools Power Tools ~25% Of Retail ~10% Of Retail Storage & Garage Related & Other ~20% Of Retail ~5% Of Retail
Slide 7: Transaction Summary
Transaction Summary 7 Transaction Details Financial Information EPS Accretion (Ex. 1-Time Charges) & CFROI • EPS Accretion, Ex- Charges – Yr. 1 ~$0.10-$0.15, Increasing To ~$0.35-$0.45 By Yr. 5 & ~$0.70-$0.80 By Yr. 10 • CFROI: Mid-Teens By Year 10 Timing • Subject To Customary Closing Conditions, I
Slide 8: Value Creation Model | Capital Allocation
Value Creation Model | Capital Allocation Strong, Innovation- Driven Businesses In Diverse, Global Markets • Outsized, Capital-Efficient Organic Growth • Attractive, Expandable OM Rate • Outstanding FCF conversion Powered By: Investor-friendly Capital Allocation ~1/2 Return Cash To Shareholders ~1/2
Slide 9: Summary
Summary Enhances Existing T&S Brand Portfolio With Addition Of Iconic Craftsman Brand Presents Significant Organic Growth Opportunity – Increases Availability Of Craftsman-Branded Products To Consumers In The U.S. EPS Accretion, Ex-Charges – Year 1 ~$0.10-$0.15, Increasing To ~$0.35-$0.45 By Year 5
Slide 10: Thank You!
THANK YOU!
Stanley Black & Decker — Merger or Acquisition (January 2017) on 6ix