Stanley Black & Decker, Inc. · NYSE:SWK
Stanley Black & Decker — Merger or Acquisition (October 2016)
10 slides from Stanley Black & Decker's merger presentation, Oct 12, 2016
Slide 1: Acquisition of Newell Tools
Acquisition of Newell Tools OCTOBER 12, 2016
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: Executive Summary
3 Executive Summary • Adds World Class Brands Irwin® & Lenox® To Stanley Black & Decker’s Stellar Brand Portfolio • Significantly Increases Power Tool Accessories Business And Expands Footprint In Plumbing & Electrical Trades • Highly Synergistic Transaction With Identified Annual Cost Synergies Of
Slide 4: Acquisitive Growth / Financial Framework
Acquisition Criteria: • Strategic Fit • Organizational Capacity • Financial Evaluation » 15% + OM | Organic Growth Consistent With Company Targets » Accretive Year 1 Excluding Charges » Achieves CFROI Targets » Value Creation Opportunity > Share Repurchase • One-Time Charges Associated With Acquisit
Slide 5: Newell Tools: Overview
Product & Regional Sales Mix Primary Brands Company Overview • ~$760M Manufacturer Of Hand Tools & Power Tool Accessories • Global Footprint With Majority Of Sales In North America • Diverse & Complementary Product Line • Strong Presence In Electrical & Plumbing Trades Newell Tools: Overview 5 Highl
Slide 6: Newell Tools: Brand Summary & Sample Products
Newell Tools: Brand Summary & Sample Products 6 ~60%* ~40%* Hand Tools ~5%* Accessories ~35%* Hand Tools ~33%* Accessories ~27%* *Represents Percent Of Consolidated Revenue Saw Blades, Metal & Wood Drilling Accessories Pliers, Holding & Clamping Tools, & Saws Band Saw Blades, Hole Saws & Linear Edge
Slide 7: Acquisition Summary
Acquisition Summary 7 Transaction Details Financial Information Newell Tools Overview • Currently Owned By Newell Brands • Leading Global Provider Of Premium Industrial Cutting, Hand Tools & Power Tool Accessories • Rich History Dating Back To 1884 (Irwin® & Lenox® Brands Acquired In 2002/2003) • LT
Slide 8: Synergy Overview
Synergy Overview 8 Footprint Consolidation & Overhead Reductions Rationalizing Manufacturing & Distribution Logistics Annual Synergies: ~$20M Other Operation Synergies Leveraging Insourcing & Material Purchase Opportunities Annual Synergies: ~$10M Retail Channel Partner Programs & Portfoli
Slide 9: Summary
Summary Enhances Existing Strong Brand Portfolio With Addition Of Irwin® & Lenox® Brands Increases Global Cross-Branding Opportunities For Tools & Storage Business Acquisition Consistent With Longstanding Growth Framework To Enhance Leadership Position Within Tools Industry EPS Accretion, Ex-Charges
Slide 10: Thank You!
THANK YOU!
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