NEW BRITAIN, CT - Stanley Black & Decker says it wants to sell the unit that operates its tool business - the Hardware & Home Improvement Group - for about $1 billion.
The Kwikset, Weiser, Baldwin, Stanley, National and Pfister brands generated 2011 revenues of $940 million. Goldman Sachs has been retained to assist. "Hardware and Home Improvement is a healthy and profitable business; however, its geographic footprint and long term growth characteristics are inconsistent with the company’s strategic objectives," the company said in a statement.
Stanley says it is looking at acquiring an engineered fastening businesses with $500 million in sales. If Stanley sells its hardware and home improvement businesses it would use the money to buy that unnamed fastening business.
Stanley made the announced while reporting net quarterly sales of just over $2.8 billion, up 7 percent, and net income of $154.8 million.
Stanley is still digesting the Black & Decker merger made in 2010. In 2011 Stanley closed on the sale of Delta Machinery to Chang Type Industrial of Taiwan.
It traces its roots to 1843, when Frederick Stanley started a small shop in New Britain, CT, to manufacture bolts, hinges, and other hardware from wrought iron. In 1910, S. Duncan Black and Alonzo G. Decker started their shop, in Baltimore, MD, patenting the first portable power tool in 1916. Both companies grew in parallel until the 2010 merger.