Acquisition Of Consolidated Aerospace Manufacturing, LLC (CAM)
The Company announced today that it has entered into a definitive agreement to acquire CAM for up to $1.5 billion in cash, with $200 million of the purchase price held back and contingent on the Boeing 737 MAX receiving FAA authorization to return to service and Boeing achieving certain production levels. When adjusted for approximately $185 million of expected cash tax benefits, the net transaction value is approximately $1.1 - $1.3 billion. CAM is an industry-leading manufacturer of specialty fasteners & components for the aerospace & defense markets (LTM revenues ~$375 million). CAM will become part of Stanley Black & Decker's broad portfolio of engineered fastening & component solutions, adding a meaningful platform within the Company's Industrial segment for continued organic and acquisitive growth.
The acquisition is expected to be accretive to EPS by approximately $0.30 - $0.40 by year three. The transaction, which is subject to customary closing conditions, including receipt of required regulatory approvals, will be funded with available cash and proceeds from borrowings.